The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). 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 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. What is the among of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is tit possible to determine the fair market value per share of common stock from the stockholders’ equity section? Please could you explain
The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). 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 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. What is the among of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is tit possible to determine the fair market value per share of common stock from the stockholders’ equity section? Please could you explain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The year end
Stockholders’ equity:
Capital stock:
7% cumulative
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.
- What is the among of legal capital and the amount of total paid-in capital?
- What is the book value per share of common stock, assuming no dividends in arrears?
- Is tit possible to determine the fair market value per share of common stock from the stockholders’ equity section? Please could you explain
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