Calculate the number of shares of preferred stock issued.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

How do direct and indirect costs differ? Provide examples.

What is the difference between managerial accounting and financial accounting?

what is the arithmetic average annual return per year? accounting question

Answer 2

Question

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Answer 6

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

Answer 7

Chapter 11, Problem 5PB

a.

To determine

Calculate the number of shares of preferred stock issued.

Answer 8

a.

Expert Solution

Explanation of Solution

The number of shares of preferred stock issued:

$Number of shares ofpreferred stock issued }=( Par value of all preferred stock outstandingPar value per share of preferred stock)=( $4,400,000$100)=44,000$

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Conclusion

Therefore, the number of shares of preferred stock issued is 44,000.

Answer 13

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

Answer 14

b.

To determine

Determine the total amount of the annual dividends paid to preferred stockholders.

Answer 15

b.

Expert Solution

Explanation of Solution

The total amount of the annual dividends paid to preferred stockholders:

$Total amount of the annual dividendspaid to preferred stockholders}=(Number of shares of preferred stock outstanding × Dividend requirement per share of preferred stock)=(44,000×$10)=$440,000$

Working note:

Calculate the amount of dividend per share of preferred stock:

$Dividend per share of preferred stock }= (Percentage of cumulative preferred stock× Par value per share)=(10%×$100)=(0.1×$100)=$10$

Answer 16

b.

Expert Solution

Answer 17

b.

Expert Solution

Answer 18

Expert Solution

Answer 19

Conclusion

Therefore, the total amount of the annual dividends paid to preferred stockholders is $440,000.

Answer 20

c.

To determine

Calculate the number of shares of common stock outstanding.

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

Answer 21

c.

To determine

Calculate the number of shares of common stock outstanding.

Answer 22

c.

Expert Solution

Explanation of Solution

The number of shares of common stock outstanding:

$Number of shares of common stock outstanding }=( Par value of all common stock outstandingPar value per share of common stock)=( $3,400,000$2)=1,700,000$

Answer 23

c.

Expert Solution

Answer 24

c.

Expert Solution

Answer 25

Expert Solution

Answer 26

Conclusion

Therefore, the number of shares of common stock outstanding is 1,700,000.

Answer 27

d.

To determine

Determine the average issuance price per share of common stock.

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Conclusion

Therefore, the average issuance price per share of common stock is $6.

Answer 28

d.

To determine

Determine the average issuance price per share of common stock.

Answer 29

d.

Expert Solution

Explanation of Solution

The average issuance price per share of common stock:

$Average issuance price per share of common stock}=(Total issuance price of all common stockNumber of shares of common stock issued )=($10,200,0001,700,000 )=$6$

Working note:

Calculate the total issuance price of all common stock:

$Total issuance price of all common stock}= (Par value of all common stock issued + Paid-in capital in excess of par common stock)=($3,400,000+$6,800,000)=10,200,000$

Answer 30

d.

Expert Solution

Answer 31

d.

Expert Solution

Answer 32

Expert Solution

Answer 33

Conclusion

Therefore, the average issuance price per share of common stock is $6.

Answer 34

e.

To determine

Calculate the amount of legal capital.

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Conclusion

Therefore, the amount of legal capital is $7,800,000.

Answer 35

e.

To determine

Calculate the amount of legal capital.

Answer 36

e.

Expert Solution

Explanation of Solution

The amount of legal capital:

$Amount of legal capital=(Par value of preferred stock + Par value of common stock )=($4,400,000 + $3,400,000 )=$7,800,000$

Answer 37

e.

Expert Solution

Answer 38

e.

Expert Solution

Answer 39

Expert Solution

Answer 40

Conclusion

Therefore, the amount of legal capital is $7,800,000.

Answer 41

f.

To determine

Calculate the total amount of paid-in capital.

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

Answer 42

f.

To determine

Calculate the total amount of paid-in capital.

Answer 43

f.

Expert Solution

Explanation of Solution

The total amount of paid-in capital:

$Total amount of paid-in capital=(Total legal capital+ Additional paid-in capital of common stock +Donated capital )=($7,800,000+$6,800,000+$400,000)=$15,000,000$

Answer 44

f.

Expert Solution

Answer 45

f.

Expert Solution

Answer 46

Expert Solution

Answer 47

Conclusion

Therefore, the total amount of paid-in capital is $15,000,000.

Answer 48

g.

To determine

Calculate the book value per share of common stock.

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Conclusion

Therefore, the book value per share of common stock is $8.09.

Answer 49

g.

To determine

Calculate the book value per share of common stock.

Answer 50

g.

Expert Solution

Explanation of Solution

The book value per share of common stock:

$Book value per share of common stock}=(Equity of common stockholdersNumber of shares of common stock outstanding )=($13,760,0001,700,000 )=$8.09$

Working notes:

Calculate the par value of preferred stock:

$Par value of preferred stock}= (Number of preferred stock issued ×Par value per share)=(44,000×$100)=$4,400,000$

Calculate the amount of equity of common stockholders:

$Equity of common stockholders = (Total stockholders' equity− Par value of preferred stock)=($18,160,000−$4,400,000)=$13,760,000$

Answer 51

g.

Expert Solution

Answer 52

g.

Expert Solution

Answer 53

Expert Solution

Answer 54

Conclusion

Therefore, the book value per share of common stock is $8.09.

Answer 55

h.

To determine

Calculate the dividend per share of common stock.

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000

Table (1)

Conclusion

Therefore, the dividend per share of common stock is $1.41.

Answer 56

h.

To determine

Calculate the dividend per share of common stock.

Answer 57

h.

Expert Solution

Explanation of Solution

The dividend per share of common stock:

$Dividend per share of common stock=(Total dividends on common stockNumber of common shares outstanding)=($2,400,0001,700,000)=$1.41$

Working note:

Calculate the total dividends on common stock:

Particulars	Amount ($)
Beginning balance of retained earnings	1,200,000
Add: Net income	4,800,000
Subtotal	6,000,000
Less: Retained earnings at the end of year	(3,160,000)
Dividends on preferred stock	(440,000)
Total dividends on common stock	$2,400,000