From this information, I must compute the answers to the following question. 1. What is the amount of legal capital and the amount of total paid-in capital? 2. What is the book value per share of common stock, assuming no dividends in arrears? 3. Is it possible to determine the fair market value per share of common stock from the stock-holders' equity section? Explain
The year end
Stockholders’ equity:
Capital stock:
7% cumulative preferred stock, $100 par value……………. $15,000,000
Common stock, $5 par value, 5,000,000 shares
Authorized, 4,000,000 shares issued and outstanding…… 20,000,000
Additional paid in capital:
Common stock……………………………………………………………… 44,000,000
Total stockholders’ equity…………………………………………… $143,450,000
From this information, I must compute the answers to the following question.
1. What is the amount of legal capital and the amount of total paid-in capital?
2. What is the book value per share of common stock, assuming no dividends in arrears?
3. Is it possible to determine the fair market value per share of common stock from the stock-holders' equity section? Explain
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