Raphael Corporation’s common stock is currently selling on a stock exchange at $

Question

Raphael Corporation’s common stock is currently selling on a stock exchange at $181 per share, and its current balance sheet shows the following stockholders’ equity section:

Raphael Corporation's common stock is currently selling on a stock exchange at $181 per share, and its nbance sheet shows the folowingckders'equity section 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 $60,000 180,000 360,000 600,000 Total stockholders' equity

Explanation / Answer

1) Current Market value of Raphael corporations common stock = $ 181 per share

2) Par Value of Corporation's Common preferred stock = $60000/1000shares

= $60

Par Value of corporations Common stock = $180000/4000shares

= $45

2.1) Total amount of dividends paid to preferred stock = 2 years arears + current year

=$60000*.05*3

=$ 9000

Total amount of dividend paid to common stock = $18500-$9000

= $9500

2.2) Dividend per share for the common stock holder = $9500/4000

= $2.375

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.