# P&G Project - stockholders’ equity(f What is...

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Refer to these financial statements and the accompanying notes to answer the following questions. (a) What is the par or stated value of P&G’s preferred stock? - (b) What is the par or stated value of P&G’s common stock? - (c) What percentage of P&G’s authorized common stock was issued at June 30, 2007? - 3,989.7 out of 10,000 shares were authorized for 2007. The percentage of P&G’s authorized common stock issued at June 30, 2007 was 39.9%, (3,989.7 / 10,000) (d) How many shares of common stock were outstanding at June 30, 2007, and June 30, 2006? - At June 30, 2006, there were 3,178,841 shares of common stock. At June 30, 2007, there were 3,131,946 shares of common stock. (e) What was the dollar amount effect of the cash dividends on P&G’s

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Unformatted text preview: stockholders’ equity? (f) What is P&G’s rate of return on common stock equity for 2007 and 2006? Rate of Return on Common stock equity = Net Income – Preferred dividends Average Common stockholders’ equity 2007 = \$10,340 - \$1,406 (3,990 + 3,976) / 2 2006 = \$8,684 - \$1,451 (3,977 + 3,976) / 2 2007 = \$8,934 \$3,983 2006 = \$7,233 \$3,976.5 2007 = 2.24 2006 = 1.82 (g) What is P&G’s payout ratio for 2007 and 2006? Payout Ratio = Cash dividends / Net Income – Preferred dividends 2007 = 3,990____ \$10,340 - \$1,406 2006 = 3,976 ____ \$8,684 - \$1,451 2007 = 3,990_ \$8,934 2006 = _3,976__ \$7,233 2007 = 44.7% 2006 = 55.0% (h) What was the market price change (high/low) of P&G’s common stock during the quarter ended June 30,2007?...
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## This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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P&G Project - stockholders’ equity(f What is...

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