Unformatted text preview: market value of the common shares was $27 each. Net Income in Year 3 was $900,000. The firm declared and distributed a cash dividend in December 31, Year 3, in the amount of $300,000. Required: Determine these values as indicated: $1,484,000 Retained Earnings at December 31, Year 3 $1,696,000 Common Stock account balance at December 31, Year 3 $127,744 Cash distributed in Year 3 to common shareholders $172,256 Cash distributed in Year 3 to preferred shareholders Early in Year 4, the firm declared and distributed a ‘4 for 1’ stock split when the fair market value of each common share was $41. Cash dividends declared and distributed late in Year 4 amounted to $320,000. Net Income for Year 4 was $1,100,000. Required: Determine these values as indicated: $217,438 Cash distributed in Year 4 to common shareholders $102,562 Cash distributed in Year 4 to preferred shareholders...
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This note was uploaded on 02/23/2010 for the course BUAD 250A at USC.