The year-end balance sheet of Smithfield Products includes the following stockholders’ equity sec-tion (with certain details omitted): 7.5% cumulative preferred stock, $100 par value, 100,000 shares authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,400,000Common stock, $2 par value, 900,000 shares authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000Additional paid-in capital: common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,325,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,595,000 Total stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,220,000 Instructions From this information, compute answers to the following questions: a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends paid to preferred stockholders? c. How many shares of common stock are outstanding?
The year-end
7.5% cumulative
b. What is the total amount of the annual dividends paid to preferred stockholders? c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? e. What is the amount of legal capital? f. What is the total amount of paid-in capital? g. What is the book value per share of common stock? (There are no dividends in arrears.) h. Assume that
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
