B-15.08 Problem

B-15.08 Problem - authorized 200,000 shares issued and...

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B-15.08 Brazil Corporation has a simple capital structure, and its equity section follows: Stockholders' Equity Common stock, $0.50 par value, 800,000 shares authorized, 300,000 shares issued and outstanding 150,000 $ Paid-in capital in excess of par -- common stock 750,000 Retained earnings 2,400,000 Total stockholders' equity 3,300,000 $ Chile Corporation has a complex capital structure, and its equity section follows: Stockholders' Equity Capital stock: Preferred stock, $50 par value, callable at 103, 5%, cumulative, 100,000 shares authorized, 60,000 shares issued and outstanding 3,000,000 $ Common stock, $1 par value, 500,000 shares
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Unformatted text preview: authorized, 200,000 shares issued and outstanding 200,000 3,200,000 $ Additional paid-in capital: Paid-in capital in excess of par -- preferred stock 60,000 $ Paid-in capital in excess of par -- common stock 800,000 860,000 Total paid-in capital 4,060,000 $ Retained earnings 6,910,000 Total stockholders' equity 10,970,000 $ With the exception of the current year's preferred dividend which is now due, Chile has paid all dividends on the preferred stock. Determine the issue price of each company's common and preferred stock. Determine the book value per common share for each company....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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