Chapter-11 - Ex. 11.3 a. b. Stockholders equity: 8%...

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Ex. 11.3 a. Stockholders’ equity: 8% cumulative preferred stock, $100 par value, 5,000 shares authorized, 2,500 shares issued …………………… Common stock, $2 stated value, 100,000 shares authorized, 70,000 shares issued ……………………………………………… 140,000 Additional paid-in capital: Preferred stock ……………………………………… 7,500 Common stock ……………………………………… 770,000 Total paid-in capital ……………………………………………… Retained earnings ……………………………………………… 382,000 Total stockholders’ equity …………………………… b. Ex. 11.4 a. Total dividends paid in third year ……………………………… $736,000 Dividends on 9% cumulative preferred stock: $360,000 180,000 Total paid on 9% cumulative pref$540,000 Dividends on 12% noncumulative preferred stock: 96,000 636,000 Dividends on common stock in third year ………………………… $100,000 b. Dividends per share: $ 13.50 per share $ 12.00 per share $ 0.25 per share c. Ex. 11.5 a. b. c. d. $250,000 $1,549,50 No. The market value of a corporation’s stock has no effect on the amount in the financial statements. Capital stock is recorded at the amount for which it was originally issued. Dividends ($50 × .09 × 40,000 × 2 years) … Current year’s dividend ($50 × .09 × 40,000 Current year’s dividend ($100 × .12 × 8,000) Preferred stock, 9% cum. ($540,000 ÷ 40,000 Preferred stock, 12% noncum. ($96,000 ÷ 8,0
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Chapter-11 - Ex. 11.3 a. b. Stockholders equity: 8%...

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