Homework Answers
| Answer 1 - Calculation of book value of both the Stocks when no dividends are in arrears | ||||||||
| a) | Book value per share of preferred stock = Preferred stock/number of shares outstanding | |||||||
| = $250000 / 10000 = $25 | ||||||||
| b) | Book Value per share of common stock = (Shareholder's Equity- Preferred stock)/ Number of common stock shares outstanding | |||||||
| = ($1585000 - $250000)/ 100000 | ||||||||
| = $1335000 / 100000 | ||||||||
| = $13.35 | ||||||||
| Answer 2 - Calculation of book value of both the Stocks when three years of preferred dividends are in arrears | ||||||||
| a) | Book value per share of preferred stock = [(Preferred Stock + (Dividend x Number of Years Outstanding)]/ Number of Preferred stock shares outstanding | |||||||
| Preferred Outstanding Dividend= ($250000 x 6% x 3 yrs) = $45000 | ||||||||
| Preferred Stock= $250000 | ||||||||
| Total amount due to Preferred Stock Holder = $250000 + 45000 = $ 295000 | ||||||||
| Book value per share of preferred stock = $295000 / 10000 = $29.50 | ||||||||
| b) | Book Value per share of common stock = (Shareholders' equity- Preferred Stock- Cumulative Dividend in arrears)/ Number of common stock shares outstanding | |||||||
| Book Value per share of common stock = ($1585000 - $250000 - $45000) / 1000000 | ||||||||
| Book Value per share of common stock = $12.90 | ||||||||
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The equity section of Cyril Corporation's balance sheet shows the following: $ 250,000 Preferred stock—6% cumulative,...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 30,000 shares issued and outstanding Retained earnings $ 250,000 300,000 267,500 $ 817,500 Total stockholders' equity This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears. 2. Three years of preferred dividends are in arrears....
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $15 par...
The equity section of Cyril Corporation's balance sheet shows
the following:
Preferred stock-5% cumulative, $15 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 45,000 shares issued and outstanding Retained earnings Total stockholders' equity $ 150,000 450,000 267,500 $ 867,500 Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in arrears at the current date. Complete...
The equity section of Cyril Corporation’s balance sheet shows the following: Preferred stock—6% cumulative, $25 par...
The equity section of Cyril Corporation’s balance sheet shows
the following:
Preferred stock—6% cumulative, $25 par value,
10,000 shares issued and outstanding
$
250,000
Common stock—$10 par value, 40,000 shares
issued and outstanding
400,000
Retained earnings
267,500
Total stockholders’ equity
$
917,500
This year's dividends on preferred stock have been paid. Determine
the book value per share of common stock under two separate
situations.
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in
arrears....
The equity section of Cyril Corporation’s balance sheet shows the following. Preferred stock—5% cumulative, $25 par...
The equity section of Cyril Corporation’s balance sheet shows the following. Preferred stock—5% cumulative, $25 par value, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 45,000 shares issued and outstanding 450,000 Retained earnings 267,500 Total stockholders’ equity $ 967,500 Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in arrears at the current date. Determine...
Exercise 11-16 Book value per share LO A4 The equity section of Cyril Corporation’s balance sheet...
Exercise 11-16 Book value per share LO A4 The equity section of Cyril Corporation’s balance sheet shows the following: Preferred stock—6% cumulative, $25 par value, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 50,000 shares issued and outstanding 500,000 Retained earnings 267,500 Total stockholders’ equity $ 1,017,500 This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears. 2....
Exercise 11-20 Book value per share LO A4 The equity section of Cyril Corporation's balance sheet...
Exercise 11-20 Book value per share LO A4 The equity section of Cyril Corporation's balance sheet shows the following. Preferred stock-6 cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 35,000 shares issued and outstanding Retained earnings 250,000 350,000 267,500 867,500 Total stockholders equity Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in...
Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common...
Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 45,000 shares issued and outstanding 450,000 Retained earnings 267,500 Total stockholders’ equity $ 967,500 Determine the book value per share of the preferred and common stock under two separate situations. 1. No preferred dividends are in arrears. Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 45,000 shares issued and outstanding...
The stockholders' equity section of Montel Company's balance sheet follows. This year's dividends on preferred stock...
The stockholders' equity section of Montel Company's balance sheet follows. This year's dividends on preferred stock have been paid and no preferred dividends are in arrears. Preferred stock-5% cumulative, $1e par value, 10,00e shares authorized, issued and outstanding Common stock-$5 par value, 228,eee shares authorized, 17e,eee shares issued and outstanding Retained earnings Total stockholders equity 1ee,eee 850, eee 1,e74,see $2,824,see Determine the book value per share of the common stock Book Value Per Common Share Book Value Per Common Share...
Required information (The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows...
Required information (The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows the following stockholders' equity section. Preferred stock-5% cumulative, . authorized, issued, and outstanding Common stock-$ and outstanding Retained earnings par value, 1,000 shares $ 60,000 par value, 4,e00 shares authorized, issued, 140,000 400,000 s 600,000 Total stockholders equity 1. What are the par values of the corporation's preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock Required information (The...
Required information [The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows...
Required information [The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows the following stockholders' equity section. $ 75,000 Preferred stock-5% cumulative, $_ par value, 1,000 shares authorized, issued, and outstanding Common stock-$__ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 160,000 320,000 $ 555,000 1. What are the par values of the corporation's preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no...
The equity section of Cyril Corporation's balance sheet shows the following: Preferred stock-5% cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 30,000 shares issued and outstanding Retained earnings $ 250,000 300,000 267,500 $ 817,500 Total stockholders' equity This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears. 2. Three years of preferred dividends are in arrears....
The equity section of Cyril Corporation's balance sheet shows
the following:
Preferred stock-5% cumulative, $15 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 45,000 shares issued and outstanding Retained earnings Total stockholders' equity $ 150,000 450,000 267,500 $ 867,500 Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in arrears at the current date. Complete...
The equity section of Cyril Corporation’s balance sheet shows
the following:
Preferred stock—6% cumulative, $25 par value,
10,000 shares issued and outstanding
$
250,000
Common stock—$10 par value, 40,000 shares
issued and outstanding
400,000
Retained earnings
267,500
Total stockholders’ equity
$
917,500
This year's dividends on preferred stock have been paid. Determine
the book value per share of common stock under two separate
situations.
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in
arrears....
Exercise 11-20 Book value per share LO A4 The equity section of Cyril Corporation's balance sheet shows the following. Preferred stock-6 cumulative, $25 par value, 10,000 shares issued and outstanding Common stock-$10 par value, 35,000 shares issued and outstanding Retained earnings 250,000 350,000 267,500 867,500 Total stockholders equity Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in...
The stockholders' equity section of Montel Company's balance sheet follows. This year's dividends on preferred stock have been paid and no preferred dividends are in arrears. Preferred stock-5% cumulative, $1e par value, 10,00e shares authorized, issued and outstanding Common stock-$5 par value, 228,eee shares authorized, 17e,eee shares issued and outstanding Retained earnings Total stockholders equity 1ee,eee 850, eee 1,e74,see $2,824,see Determine the book value per share of the common stock Book Value Per Common Share Book Value Per Common Share...
Required information (The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows the following stockholders' equity section. Preferred stock-5% cumulative, . authorized, issued, and outstanding Common stock-$ and outstanding Retained earnings par value, 1,000 shares $ 60,000 par value, 4,e00 shares authorized, issued, 140,000 400,000 s 600,000 Total stockholders equity 1. What are the par values of the corporation's preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock Required information (The...
Required information [The following information applies to the questions displayed below.) Raphael Corporation's balance sheet shows the following stockholders' equity section. $ 75,000 Preferred stock-5% cumulative, $_ par value, 1,000 shares authorized, issued, and outstanding Common stock-$__ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 160,000 320,000 $ 555,000 1. What are the par values of the corporation's preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no...
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