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The year-end balance sheet of Smithfield Products includes the following stockholders’ equity section |
| Stockholders’ equity: | ||
| 71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized | $ | 2,700,000 |
| Common stock, $2 par value, 900,000 shares authorized | 900,000 | |
| Additional paid-in capital: Common stock | 9,000,000 | |
| Retained earnings | 2,595,000 | |
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| Total stockholders’ equity | $ | 15,195,000 |
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| From this information, compute answers to the following questions: |
| a. |
How many shares of preferred stock have been issued? |
| Number of shares of preferred stock |
| b. |
What is the total amount of the annual dividends paid to preferred stockholders?(Round intermediate |
| Annual preferred stock dividend | $ |
| c. |
How many shares of common stock are outstanding? |
| Number of shares of common stock |
| d. |
What was the average issuance price per share of common stock?(Round your answers to2decimal places. Omit the “$” sign in your response) |
| Average issuance price | $ |
| e. |
What is the amount of legal capital?(Omit the “$” sign in your response) |
| Legal capital | $ |
| f. |
What is the total amount of paid-in capital?(Omit the “$” sign in your response) |
| Paid in capital | $ |
| g. |
What is the book value per share of common stock? (There are no dividends in arrears.)(Round your answers |
| Book value per share | $ |
| h. |
Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the |
| Dividend per share of common stock | $ |
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