The year-end balance sheet of Columbus Products, Incorporated, includes the following stockholders equity section (with...
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Accounting
The year-end balance sheet of Columbus Products, Incorporated, includes the following stockholders equity section (with certain details omitted).
Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value $ 12,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 3,600,000 shares issued and outstanding 18,000,000 Additional paid-in capital: Common stock 47,000,000 Retained earnings 64,450,000 Total stockholders equity $ 141,450,000
From this information, compute answers to the following questions:
Required:
- How many shares of preferred stock have been issued?
- What is the total amount of the annual dividends to which preferred stockholders are entitled?
- What was the average issuance price per share of common stock?
- What is the amount 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 it possible to determine the fair market value per share of common stock from the stockholders' equity section above?
The year-end balance sheet of Columbus Products, Incorporated, includes the following stockholders equity section (with certain details omitted).
| Stockholders' equity: | |
|---|---|
| Capital stock: | |
| 7% cumulative preferred stock, $100 par value | $ 12,000,000 |
| Common stock, $5 par value, 5,000,000 shares authorized, 3,600,000 shares issued and outstanding | 18,000,000 |
| Additional paid-in capital: | |
| Common stock | 47,000,000 |
| Retained earnings | 64,450,000 |
| Total stockholders equity | $ 141,450,000 |
From this information, compute answers to the following questions:
Required:
- How many shares of preferred stock have been issued?
- What is the total amount of the annual dividends to which preferred stockholders are entitled?
- What was the average issuance price per share of common stock?
- What is the amount 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 it possible to determine the fair market value per share of common stock from the stockholders' equity section above?
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