The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 4% cumulative, 190,000 shares authorized, 49,000 shares issued and outstanding $ 490,000 Common stock, $15 stated value, 240,000 shares authorized, 49,000 shares issued and ?? shares outstanding 735,000 Paid-in capital in excess of par—Preferred 39,000 Paid-in capital in excess of stated value—Common 147,000 Total paid-in capital $ 1,411,000 Retained earnings 340,000 Treasury stock, 8,000 shares (30,000 ) Total stockholders’ equity $ 1,721,000 Note: The market value per share of the common stock is $30, and the market value per share of the preferred stock is $21. Required What is the par value per share of the preferred stock? What is the dividend per share on the preferred stock? What is the number of common stock shares outstanding?
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 4% cumulative, 190,000 shares authorized, 49,000 shares issued and outstanding $ 490,000 Common stock, $15 stated value, 240,000 shares authorized, 49,000 shares issued and ?? shares outstanding 735,000 Paid-in capital in excess of par—Preferred 39,000 Paid-in capital in excess of stated value—Common 147,000 Total paid-in capital $ 1,411,000 Retained earnings 340,000 Treasury stock, 8,000 shares (30,000 ) Total stockholders’ equity $ 1,721,000 Note: The market value per share of the common stock is $30, and the market value per share of the preferred stock is $21. Required What is the par value per share of the preferred stock? What is the dividend per share on the preferred stock? What is the number of common stock shares outstanding?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The
| Stockholders’ Equity | ||||||
| Paid-in capital | ||||||
| 190,000 shares authorized, 49,000 shares issued and outstanding | $ | 490,000 | ||||
| Common stock, $15 stated value, 240,000 shares authorized, 49,000 shares issued and ?? shares outstanding | 735,000 | |||||
| Paid-in capital in excess of par—Preferred | 39,000 | |||||
| Paid-in capital in excess of stated value—Common | 147,000 | |||||
| Total paid-in capital | $ | 1,411,000 | ||||
| 340,000 | ||||||
| (30,000 | ) | |||||
| Total stockholders’ equity | $ | 1,721,000 | ||||
Note: The market value per share of the common stock is $30, and the market value per share of the preferred stock is $21.
Required
- What is the par value per share of the preferred stock?
- What is the dividend per share on the preferred stock?
- What is the number of common stock shares outstanding?
- What was the average issue price per share (price for which the stock was issued) of the common stock?
- If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the Retained Earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split?
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