stockholders equity convertible $17.20 preferred stock,$250 par value, 1,000,000
ID: 2435444 • Letter: S
Question
stockholders equityconvertible $17.20 preferred stock,$250 par value, 1,000,000 shares authorized; 345,000 shares issued and outstanding.........$86,250
common stock, par value, $.50; 25,000 shares authorized.....6,819
additional paid in capital ....87,260
retained earnings....57,263
total stockholders equity.........$237,592
a. how many shares of common stock have been issued?
b. what is the total ammount of the annual dividends paid to preferred stockholders?
c. what is the total amount of paid in capital?
d. what is the book vallue per share of common stock?
e. briefly explain the advantages and disadvantages to parsons of being publicly owned rather than operating as a closely held corporation.
f. what is meant by the term convertible used in the caption of the preferred stock? is there anyt more information that investeros need to know to evaluate this conversion feature ?
g.assume that the preferred stock currently is selling at $248 per share. does this provide a higher or lower dividend yield than 8 percent, $50 par value preferred with a market price of $57 per share? show computations (round to the nearest tenth of 1 percent). explain why one preferred stock might yield less than another.
Explanation / Answer
a. Par value of all common stock outstanding $6,819 Par value per share 0.50 Number of shares outstanding $13,638 b. Dividend requirement per share of preferred stock $17.20 Numbers of shares of preferred stock outstanding 345 Annual dividends paid to preferred stockholders $5,934 c. Par value of preferred stock $86,250 Par value of common stock 6,819 Additional paid-in capital 87,260 Total paid-in capital $180,329 d. Total stockholders
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