The balance sheet caption for common stock is the following: Common stock without par value, 4,100,000.shares authorized, 840,000 shares issued, and 690,000 shares outstanding $4,000,000 Required: a. Calculate the average price at which the shares were issued. b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. c. If a cash dividend of $0.12 per share were declared, calculate the total amount of cash that would be paid to stockholders. d. What accounts for the difference between issued shares and outstanding shares? Required A Required B Required C Required D If these shares had been assigned a stated value of $1 each, show how the caption here would be different. Common stock at stated value of $1 per share; 4,100,000 shares authorized, 840,000 issued and 690,000 shares outstanding 24 840,000 Additional paid in capital 3,158,400 Total paid in capital $ 3,998,400
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
hello, I just need help on the second one "additional paid in capital" as the answer I put is not right
Average price at which shares were issued = Common stock / Number of shares issued
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
