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***Can someone please help me with the following 2 questions. ****** The followi

ID: 2372662 • Letter: #

Question

***Can someone please help me with the following 2 questions. ****** The following data should be used in solving Questions 29 and 30. Each of the questions is mutually exclusive of the other questions. Alpha Corporation has the following Shareholders Equity section of the Balance Sheet at 1/1/2004: Preferred Stock, 10%, $100 Par Value, 10,000 shares authorized, 1,000 issued, and outstanding = $ 100,000 Additional Paid In Capital Preferred Stock = $240,000 Common Stock, $10 Par Value, 100,000 shares authorized, 50,000 shares issued and outstanding = $500,000 Additional Paid In Capital Common Stock = 800,000 Total Paid In Capital = $1,640,000 Retained Earnings = 2,000,000 Total Shareholders Equity = $ 3,640,000 Questions 29 (Stockholders' Equity): Assume Alphas Board of Directors declares a cash dividend to all Shareholders. The Preferred Shareholders will receive their assured amount and the Common Shareholders will receive $ .10 per share. What will be the total dollar amount of the dividend? a. $110,000 b. $105,000 c. $15,000 d. $55,000 e. insufficient information to solve Questions 30 (Stockholders' Equity): Assume that Alpha has Net Income for the year of $360,000. What is the dollar amount of Earnings Per Share for Alpha for the year? a. $ 6.86 b. $ 7.05 c. $ 7.00 d. $ 7.20 e. insufficient information to solve

Explanation / Answer

Questions 29What will be the total dollar amount of the dividend?


Total dividend = 10%* 100,000 + 0.10*50000 = $15000


c. $15,000


Questions 30 (Stockholders' Equity): Assume that Alpha has Net Income for the year of $360,000. What is the dollar amount of Earnings Per Share for Alpha for the year?


Earning available to equity = 360000- 10%*100000 = $350,000

No of equity share outstanding = 50,000

Earning per share = $7.00


c. $ 7.00