Libby Solutions Ch 11

Libby Solutions Ch 11 - E112. Req. 1 The number of...

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Unformatted text preview: E112. Req. 1 The number of authorized shares is specified in the corporate charter: 200,000. Req. 2 Issued shares are the shares sold to the public: 160,000 Req. 3 Issued shares 160,000 Treasury stock (20,000) Outstanding shares 140,000 E113. Req. 1 Stockholders Equity Contributed capital: Preferred stock, authorized 4,000 shares, issued and outstanding, 3,000 shares....................................................... $ 24,000 Common stock, authorized 103,000 shares, issued and outstanding, 20,000 shares..................................................... 200,000 Capital in excess of par, preferred............................................................... 36,000 Capital in excess of stated value, no-par common...................................... 120,000 Total contributed capital........................................................................... 380,000 Retained earnings............................................................................................ 40,000 Total Stockholders Equity........................................................................ $420,000 Req. 2 The answer would depend on the profitability of the company and the stability of its earnings. The preferred stock has a 9% dividend rate. If the company earns more than 9%, the additional earnings would accrue to the current stockholders. If the company earns less than 9%, it would pay a higher rate to the preferred stockholders. E114. Req. 1 ($20 x 90,000 shares) - $1,600,000 = $200,000 Req. 2 $900,000 - $1,000,000 + $800,000 = $700,000 Req. 3 90,000 shares 80,000 shares = 10,000 shares Req. 4 EPS = $1,000,000 80,000 = $12.50 E115.E115....
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This note was uploaded on 03/20/2012 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Libby Solutions Ch 11 - E112. Req. 1 The number of...

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