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The following information pertains to Parsons Co.: Preferredstock, cumulative: Par value per share $100 Dividend rate 8% Sharesoutstanding 9,000 Dividends in arrears none Common stock: Par valueper share $10 Shares issued 130,000 Dividends paid per share $2.10Market price per share $48 Additional paid-in capital $480,000Unappropriated retained earnings (after closing) $250,000 Retainedearnings appropriated for contingencies $320,000 Common treasurystock: Number of shares 9,000 Total cost $250,000 Net income$616,000 Compute (assume no changes in balances during the pastyear): (Round per share and ratios to 2 decimal places, e.g. $15.75or 15.75%.) (a) Total amount of stockholders' equity in the balancesheet $ (b) Earnings per share of common stock $ per share (c) Bookvalue per share of common stock $ per share (d) Payout ratio ofcommon stock % (e) Return on common stock equity %

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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Raphael Corporation’s common stock is currently selling on astock exchange at $154 per share, and its current balance sheetshows the following stockholders’ equity section: Preferredstock—5% cumulative, $___ par value, 1,000 shares authorized,issued, and outstanding $ 50,000

Common stock—$___ par value, 4,000 shares authorized, issued,and outstanding 80,000

Retained earnings 300,000

Total stockholders' equity $ 430,000

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What are the par values of the corporation's preferred stock andits common stock?

If no dividends are in arrears, what are the book values pershare of the preferred stock and the common stock?

If two years' preferred dividends are in arrears, what are thebook values per share of the preferred stock and the commonstock?

If two years’ preferred dividends are in arrears and thepreferred stock is callable at $60 per share, what are the bookvalues per share of the preferred stock and the common stock?

If two years’ preferred dividends are in arrears and the boardof directors declares cash dividends of $19,500, what total amountwill be paid to the preferred and to the common shareholders?

The stockholders’equity section of Birdman Corp.’s balance sheet at December 31 ispresented here.
Birdman Corp.
Balance Sheet (partial)
Stockholders’ 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 stockholders’equity $4,200,067
From a review of thestockholders’ 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

Problem 8-23 Analyzing the stockholders equity section of thebalance sheet LO 8-4, 8-7

The stockholders’ equity section of the balance sheet for GatorCompany at December 31, 2014, is as follows:


Stockholders’ Equity
Paid-in capital
Preferred stock, ? par value, 6%cumulative,
250,000 sharesauthorized, 55,000 shares issued
and outstanding $550,000
Common stock, $20 stated value,300,000 shares
authorized, 55,000 sharesissued and ? outstanding 1,100,000
Paid-in capital in excess ofpar—Preferred 45,000
Paid-in capital in excess of statedvalue—Common 165,000


Total paid-in capital 1,860,000
Retained earnings 400,000
Treasury stock, 8,000 shares (40,000 )

Total stockholders’ equity $ 2,220,000

Note: The market value per share of the common stock is $40, andthe market value per share of the preferred stock is $27.

Required

a. What is the par value per share of the preferredstock?

b. What is the dividend per share on the preferred stock? (Roundyour answer to 2 decimal places.)

c. What is the number of common stock sharesoutstanding?

d.

What was the average issue price per share (price for which thestock was issued) of the common stock? (Round your answer to 2decimal places.)

f.

If Gator declared a 2-for-1 stock split on the common stock, howmany shares would be outstanding after the split? What amount wouldbe transferred from the Retained Earnings account because of thestock split? Theoretically, what would be the market price of thecommon stock immediately after the stock split?

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