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Exercise 3 : Initial sale price of common stock.
Beck Corporation has one issue of preferred stock and one issue of common stock
outstanding. Given Beck's stockholders equity account that follows, determine the
original price per share at which the firm sold its single issue of common stock.
Stockholder's Equity ($000)
Preferred stock
$125
Common stock ($0.75 par, 300,000 shares outstanding)
225
Paid in capital in excess of par on common stock
2.625
Retained earnings
900
Total stockholders' equity
$3,875

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