CASE (3) Computation of selected financial ration. The following information pertains to Parsons Co.: Preferred stock, cumulative: Par per share $200 Dividend rate 10% Shares outstanding 10,000 Dividends in arrears none Common stock: Par per share $20 Shares issued 120,000 Dividends paid per share $2.70 Market price per share $48.00 Additional paid-in capital $800,000 Unappropriated retained earnings (after closing) $540,000 Retained earnings appropriated for contingencies $600,000 Common treasury stock: Number of shares 10,000 Total loss $500,000 Instructions Compute (assume no changes in balances during the past year): 1-Total amount of stockholders' equity in the balance sheet 2- Book value per share of Preferred stock 3- Book value per share of common stock ng ECTIVES
CASE (3) Computation of selected financial ration. The following information pertains to Parsons Co.: Preferred stock, cumulative: Par per share $200 Dividend rate 10% Shares outstanding 10,000 Dividends in arrears none Common stock: Par per share $20 Shares issued 120,000 Dividends paid per share $2.70 Market price per share $48.00 Additional paid-in capital $800,000 Unappropriated retained earnings (after closing) $540,000 Retained earnings appropriated for contingencies $600,000 Common treasury stock: Number of shares 10,000 Total loss $500,000 Instructions Compute (assume no changes in balances during the past year): 1-Total amount of stockholders' equity in the balance sheet 2- Book value per share of Preferred stock 3- Book value per share of common stock ng ECTIVES
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:CASE (3)
Computation of selected financial ratios. The following information pertains to Parsons
Co.:
Preferred stock, cumulative
Par per share $200
Dividend rate 10%
Shares outstanding 10.000
Dividends in arrears none
Common stock:
Par per share $20
Shares issued 120,000
Dividends paid per share $2.70
Market price per share $48.00
Additional paid-in capital $800,000
Unappropriated retained earnings (after closing) $540,000
Retained earnings appropriated for contingencies $600,000
Common treasury stock:
Number of shares 10,000
Total loss $500,000
Instructions
Compute (assume no changes in balances during the past year);
1-Total amount of stockholders' equity in the balance sheet
2- Book value per share of Preferred stock
3- Book value per share of common stock
2. Exp
To
and the
Describe the
ter studying this chape you a
LEARNING OBJECTIVES
Equity
CHAPTER 1
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