CHAPTER 14

Onewouldexpectthatthevotingshareshaveahigherpricebecau

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Unformatted text preview: nings Treasury shares Other adjustments Net common equity $ 120.5 1,791.5 4,757.0 (2,920.0) (652.0) $3,097.0 Common shares ($0.25 par value) Additional paid­in capital Retained earnings Treasury shares Other adjustments Net common equity $ 120.5 1,791.5 4,757.0 (3,620.0) (652.0) $2,397.0 b. 7. One would expect that the voting shares have a higher price because they have an added benefit/responsibility that has value. 8. a. Gross profits Interest EBT Tax (at 35%) Funds available to common shareholders $ $ $ 760,000 100,000 660,000 231,000 429,000 Gross profits Interest EBT Tax (at 35%) Net income $ $ $ 760,000 100,000 660,000 231,000 429,000 b. Preferred dividend Funds available to common shareholders 80,000 $ 349,000 9...
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This note was uploaded on 04/26/2013 for the course MATH 289Q taught by Professor Jamesbridgeman during the Fall '04 term at UConn.

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