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Assignment Print View - Assignment Print View 6/11/11 8:27...

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6/11/11 8:27 PM Assignment Print View Page 1 of 4 http://ezto.mhhm.mcgraw-hill.com/hm.tpx?todo=printview Score: 19.57 out of 20 points (97.85%) 1. award: 9.57 out of 10 points The year-end balance sheet of Jackson Products, Inc., includes the following stockholders' equity section (with certain details omitted): Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value $16,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,500,000 shares issued and outstanding 22,500,000 Additional paid-in capital: Common stock 49,000,000 Retained earnings 64,450,000 Total stockholders' equity $151,950,000 From this information, compute answers to the following questions: a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends to which preferred stockholders are entitled? c. What was the average issuance price per share of common stock? d. What is the amount of legal capital and the amount of total paid-in capital? e. What is the book value per share of common stock? (Round your answers to two decimal places. Omit the "$" sign in your response.) a. 160,000 shares ($ 16,000,000 total par value, divided by $100 par value per share) b. $ 1,120,000 ($ 16,000,000 total par value × 7% or 160,000 x $100 × 7%) c. $ 15,888,888 [($ 22,500,000 par value + $ 49,000,000 additional paid-in capital) ÷ 4,500,000 shares issued] d. $ 38,500,000 legal capital ($ 16,000,000 preferred, plus $ 22,500,000 common) $ 87,500,000 total paid-in capital ($ 38,500,000 legal capital, plus $ 49,000,000 additional paid-in capital) e. Total stockholders' equity $ 151,950,000 Less: Par value of preferred stock ( 160,000 shares × $100) 16,000,000 Equity of common stockholders $ 135,950,000 Common shares outstanding 4,500,000 Book value per share ($ 135,950,000 ÷ 4,500,000 shares) $ 30.21 The year-end balance sheet of Jackson Products, Inc., includes the following stockholders' equity section (with certain details omitted): Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value $16,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,500,000 shares issued 22,500,000
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This note was uploaded on 06/11/2011 for the course ACCT 281 taught by Professor Uknown during the Spring '11 term at Columbia.

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Assignment Print View - Assignment Print View 6/11/11 8:27...

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