[The following information applies to the questionsdisplayed below.]
Raphael Corporationâs common stock is currently selling on astock exchange at $191 per share, and its current balance sheetshows the following stockholdersâ equity section:
Preferred stockâ5% cumulative, $___ par value, 1,000shares
authorized, issued, and outstanding $ 55,000 Common stockâ$___ par value, 4,000 shares authorized,issued,
and outstanding 140,000 Retained earnings 370,000 Total stockholders' equity $ 565,000
1. What is the current market value (price) ofthis corporationâs common stock?
Market price per share
2. What are the par values of the corporation'spreferred stock and its common stock?
Par Value Corporation's preferred stock Corporation's common stock
3. If no dividends are in arrears, what are thebook values per share of the preferred stock and the commonstock?
Book Value Per PreferredShare ChooseNumerator: / ChooseDenominator: = Book Value PerPreferred Share / = Book value perpreferred share / =
Book Value Per CommonShare ChooseNumerator: / ChooseDenominator: = Book Value PerCommon Share / = Book value percommon share / =
4. If two years' preferred dividends are inarrears, what are the book values per share of the preferred stockand the common stock?
Book Value PerPreferred Share ChooseNumerator: / ChooseDenominator: = Book Value PerPreferred Share / = Book value perpreferred share / = Book Value PerCommon Share ChooseNumerator: / ChooseDenominator: = Book Value PerCommon Share / = Book value percommon share / =
5. If two yearsâ preferred dividends are inarrears and the preferred stock is callable at $65 per share, whatare the book values per share of the preferred stock and the commonstock?
Book Value PerPreferred Share ChooseNumerator: / ChooseDenominator: = Book Value PerPreferred Share / = Book value perpreferred share / = Book Value PerCommon Share ChooseNumerator: / ChooseDenominator: = Book Value PerCommon Share / = Book value percommon share / =
6.1 If two yearsâ preferred dividends are inarrears and the board of directors declares cash dividends of$17,900, what total amount will be paid to the preferred and to thecommon shareholders?
Total amount paidto the preferred shareholders Total amount paidto the common shareholders
6.2 What is the amount of dividends per share for the common stock?(Round your answer to two decimal places.)
Dividend pershare
[The following information applies to the questionsdisplayed below.]
Raphael Corporationâs common stock is currently selling on astock exchange at $191 per share, and its current balance sheetshows the following stockholdersâ equity section: |
| Preferred stockâ5% cumulative, $___ par value, 1,000shares authorized, issued, and outstanding | $ | 55,000 |
| Common stockâ$___ par value, 4,000 shares authorized,issued, and outstanding | 140,000 | |
| Retained earnings | 370,000 | |
| Total stockholders' equity | $ | 565,000 |
1. What is the current market value (price) ofthis corporationâs common stock?
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2. What are the par values of the corporation'spreferred stock and its common stock?
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3. If no dividends are in arrears, what are thebook values per share of the preferred stock and the commonstock?
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4. If two years' preferred dividends are inarrears, what are the book values per share of the preferred stockand the common stock?
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5. If two yearsâ preferred dividends are inarrears and the preferred stock is callable at $65 per share, whatare the book values per share of the preferred stock and the commonstock?
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6.1 If two yearsâ preferred dividends are inarrears and the board of directors declares cash dividends of$17,900, what total amount will be paid to the preferred and to thecommon shareholders?
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Related questions
Raphael Corporationâs common stock is currently selling on astock exchange at $171 per share, and its current balance sheetshows the following stockholdersâ equity section:
| Preferredstockâ5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding | $ | 85,000 |
| Commonstockâ$___ par value, 4,000 shares authorized, issued, and outstanding | 200,000 | |
| Retainedearnings | 340,000 | |
Total stockholders' equity | $ | 625,000 |
| 1. What is the current market value (price) ofthis corporationâs common stock? 2. What are the par values of the corporationâspreferred stock and its common stock? 3. If no dividends are in arrears, what is thebook value per share of common stock? 4. If two yearsâ preferred dividends are inarrears, what is the book value per share of common stock? 5.1 If two yearsâ preferred dividends are inarrears and the board of directors declares cash dividends of$20,850, what total amount will be paid to the preferred and to thecommon shareholders? | ||
| The stockholdersâequity section of Birdman Corp.âs balance sheet at December 31 ispresented here. | |||||||
| Birdman Corp. | |||||||
| Balance Sheet (partial) | |||||||
| Stockholdersâ equity | |||||||
| Paid-incapital | |||||||
| Preferred stock, cumulative,10,000 shares authorized, 6,000 shares issued and outstanding | $ 640,000 | ||||||
| Common stock, no par, 735,776shares authorized, 569,000 shares issued | 2,400,000 | ||||||
| Totalpaid-in capital | 3,040,000 | ||||||
| Retainedearnings | 1,191,000 | ||||||
| Total paid-incapital and retained earnings | 4,231,000 | ||||||
| Less:Treasury stock (5,200 common shares) | 30,933 | ||||||
| Total stockholdersâequity | $4,200,067 | ||||||
| From a review of thestockholdersâ equity section, answer the following questions: | |||||||
| (a) How many shares of commonstock are outstanding? | |||||||
| Common stock outstanding | shares | ||||||
| (b) Assuming there is a statedvalue, what is the stated value of the common stock? | |||||||
| The stated value of the commonstock | per share | ||||||
| (c) What is the par value ofthe preferred stock? | |||||||
| The par value of the preferredstock | per share | ||||||
| (d) If the annual dividend onpreferred stock is $57,600, what is the dividend rate on preferredstock? | |||||||
| The dividend rate | % | ||||||
| (e) If dividends of $74,800were in arrears on preferred stock, what would be the balancereported for retained earnings? | |||||||
| The Retained Earningsbalance | |||||||
