65. The stockholders’ equity of A Company at the end of 2023 and 2022 are as follows: 20232022Preferred stock, P100 par, 12%P1,000,000P 600,000Common stock, P20 par 2,000,000 1,800,000Paid in capital in excess of par Preferred 16,000- Common 4,350,000 3,750,000Retained earnings 80,000 180,000At what price per share are the shares of preferred stock issued in 2023?

To calculate the issue price per share of preferred stock, firstly we need to calculate the no. of…

Answered: The stockholders’ equity of A Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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44. A firm has common stock with a market price of P55 per share and an expected dividend of P2.81 per share at the end of the coming year. The dividends paid on the outstanding stock over the past five years are as follows: Year Dividend 1 P 2.00 2 2.14 3 2.29 4 2.45 5 2.62 The cost of the firm's common stock equity is Group of answer choices 4.1 percent. 5.1 percent. 12.1 percent. 15.4 percent.
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. $ 241,000 482,000 195,000 1,950,000 3,900,000 20,500 Common stock, $1 par, 241,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 19,500 shares outstanding Retained earnings Treasury stock, at cost, 4,100 shares During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 20: Declared a property dividend of 100,000 shares of Burak Company (book value $11.9 per share, fair value $9.95 per share). Shareholders' equity Distributed the property dividend. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Dolar chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. Declared and distributed a 4% stock dividend…
#35 ABC Company has the following 2022 data: Net Income – P 4,000,000 January 1 outstanding shares – 100,000 Share options, 9,000 pieces, entitling to purchase 1 share for each 1 option for P 120 – 90,000 Average Market price – P 150 Ending market price at year-end – P 200 How much is the diluted earnings per share for the year assuming share options were issued on June 1, 2022 and no exercise of options were made during the year? (round off to the nearest centavo)
PLEASE ANSWER WITH COMPLETE SOLUTION The net income for the year-end 2020 – P450,000 The preferred dividends paid in 2020 – P30,000 At the beginning of the year 2020, the common shares outstanding were 50,000 shares. In the middle of the year, Hershey’s Corporation issued another 40,000 common shares. Find out the earnings per share (EPS)
On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following balances: Common Stock ($50 par value, 50,000 issued) $2,500,000 Capital Contributed in Excess of Par Value—Common Stocks 600,000 Retained Earnings 4,200,000 How much will the Common Stock account balance be after declaring and distributing a 100% stock dividend? a. $5,000,000. b. $7,300,000. c. $2,500,000.
The stockholders' equity of A Company at the end of 2023 and 2022 are as follows: 2023 2022 Preferred stock, P100 par, 12% P1,000,000 P 600.000 Common stock, P20 par 2,000,000 1,800,000 Paid in capital in excess of par Preferred 16,000 Common 4,350,000 3,750,000 Retained earnings 80,000 180,000 At what price per share are the shares of preferred stock issued in 2023?
13 A company has common stock with a market price of P54.50 per share and an expected dividend of P2.81 per share at the end of the coming year. The dividends paid on the outstanding stock over the past five years are as follows:Year Dividend1 P2.202 P2.313 P2.434 P2.555 P2.68The cost of the company’s common stock equity is Group of answer choices Between 10% and 11% Between 12% and 13% Between 14% and 15% Between 8% and 9% Between 9% and 10% Between 13% and 14% Between 11% and 12%
Problem 1. Dividends on Preference and Ordinary Shares The preference and ordinary shares outstanding of ABC Company on December 31, 2020 follows: 8% Preference shares, P10 par, cumulative, participating, 40,000 shares authorized, 10,000 shares issued and outstanding P100,000 Ordinary Shares, P2 par, 10,000,000 shares authorized, 250,000 shares issued and outstanding 500,000 Total Preference and Ordinary Shares P 600,000 Required: Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions: 1. Preference dividends for 2019 are in arrears. On December 31, 2020, ABC declared a total dividend of P56,000. 2. No dividends are in arrears. On December 31, 2020, ABC declared a total dividend of P66,000. 3. Preference dividends for 2018 and 2019 are in arrears. On December 31, 2020, ABC declared a total dividend of P88,000.
The following comparative statements of stockholders’ equity are prepared for Nolan Corporation: Jan.1,2015 Jan.1,2017 Jan.1,2019 Common stock ($10 par). . . . . . . $300,000 $300,000 $300,000 Paid-in capital in excess of par . . . 60,000 60,000 60,000 Retained earnings . . . . . . . . . . . . . . . 42,000 120,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . .$360,000 $402,000 $480,000 Less treasury stock (at cost) . . . . (75,000) (75,000) Total stockholders’ equity. . . . . . $360,000 $327,000 $405,000 Tarman Corporation acquires 60% of Nolan Corporation common stock for $12 per share on January 1, 2015, when the latter corporation is formed. On January 1, 2017, Nolan Corporation purchases 5,000 shares of its own common stock from…
The Stockholders’ Equity accounts of ExxonMobil on December 31, 2022 were as follows: Preferred Stock ( 6% , $100 par, cumulative, 800 authorized) $720,000 Common Stock ( $3 par, 1,500,000 authorized) 1,080,000 APIC – Preferred Stock 108,000 APIC – Common Stock 840,000 Retained Earnings 936,000 Treasury Stock – Common ( $9 cost) 54,000 During 2023, ExxonMobil had the following transactions and events pertaining to its stockholders’ equity: March 21: Issued 24,000 shares of Common Stock in exchange for Land. On the date of purchase, the Land had a Fair Market Value of $210,000 and the stock was selling for $11 per share. April 17: Sold 1,800 shares of Treasury Stock – Common for $12 per share.November 22: Purchased 800 shares of Common Stock for the Treasury at a cost of $7,560. December 31: Determine that net income for the year was $556,000. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders…
which one is correct please confirm? QUESTION 34 WPI Inc. has the following current equity accounts on its balance sheet: Common stock ($2.50 par, 500,000 shares) $ 1,250,000 Contributed capital in excess of par $10,000,000 Retained earnings $15,540,000 Total $26,790,000 If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts? a. $15.54 b. $31.08 c. $34.28 d. $3.20
On December 31, 2019, an entity reported the following equity items: 8% cumulative preference shares (150,000 issued, P20 par) Ordinary share capital (2,000,000 issued, P5 par) Share Premium- Preference + Share Premium -Ordinary Retained Earnings The following transactions affected equity during 2020: Jan 1. Apr 1 Jun 1 Jul 1 Oct 1 Dec 31 was paid during 2018 P3,000,000 10,000,000 200,000 27,000,000 4,500,000 30,000 preference shares issued at P22 per share 50,000 ordinary shares issued at P20 per share 2-for-1 share split on the ordinary share 30,000 ordinary treasury shares were reacquired at P10 per share 10,000 treasury shares were re-issued at P11 per share Net-income for the year is P9,000,000. The latest preference dividend

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	2023	2022
Preferred stock, P100 par, 12%	P1,000,000	P 600,000
Common stock, P20 par	2,000,000	1,800,000
Paid in capital in excess of par
Preferred	16,000	-
Common	4,350,000	3,750,000
Retained earnings	80,000	180,000