1. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

How much capital did the company raise by issuing preferred stock?

 

2. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

 

How many shares of common stock were issued? What was the average issuing price?

 

3. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

 

What is the current year’s dividend stipulated for the preferred shareholders?

 

4. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

 

Assume $12,000 dividends are paid to preferred stockholders in 2014 and $24,000 are paid to preferred stockholders in 2015. If the company announces that they will pay a total of $280,000 dividends to all shareholders in 2016, how much would have to be paid to preferred shareholders before any dividends are paid to common shareholders?

 

5. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

 

If no additional shares of common stock are issued in 2016, how many shares of common stock are outstanding in 2016? Use the information from the above question (i.e., Question 9), how much dividends can common shareholders receive for each share of stock in 2016? (Round to the second decimal point)

 

6. You’ve Made It Corporation presents the following partial balance sheet as of December 31, 2015:

Stockholders' Equity

 

Contributed Capital

 

Preferred stock, 8% cumulative ($25 par value; 50,000 shares authorized; 30,000 shares issued and outstanding )

$       750,000

Capital in excess of par, preferred stock

225,000

Common stock ($0.02 par value; 800,000 shares authorized; ________ shares issued and ____ shares outstanding

5,000

Capital in excess of par, common stock

1,300,000

Total contributed capital

$    2,280,000

Retained Earnings

1,020,000

Treasury Stock, 40,000 common shares, at cost

(240,000)

Total stockholders' equity

$    3,060,000

What is the average purchasing price of the treasury stock?

 

 

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