accthw4 - Equity of common stockholders $ 128,000,000...

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ACCT115 Assignment #4 Exercise 11.5 a. $15,000,000 total par value/ $100 par value per share = 150,000 shares b. 150,000 × $100 × 7%) =$1,050,000 c. ($20 million + $44 million) ÷ 4,000,000 shares = $16 d. $15,000,000 + $20,000,000 =$35,000,000 legal capital $35,000,000 + $44,300,000 = $79,300,000 total paid-in capital e. Total stockholders’ equity . ............................................................................. $ 143,750,000 Less: Call price of preferred stock (150,000 shares × $105) . ............................. 15,750,000
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Unformatted text preview: Equity of common stockholders . ................................................................... $ 128,000,000 Common shares outstanding . ............................................................................. 4,000,000 Book value per share ($128 million ÷ 4 million shares). ................................................ $32 f. Changes in the market value of capital stock do NOT affect a corporation’s financial position. These change are also reflected in the balance sheet’s equity section....
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