(please show work for all three) 1) A company issues 500,000 shares of preferred
ID: 2534464 • Letter: #
Question
(please show work for all three)
1) A company issues 500,000 shares of preferred stock for $30 a share. The stock has a fixed annual dividend rate of 5% and a par value of $9 per share. The current price of the preferred stock is $ 32 a share. Preferred stockholders can anticipate receiving a per share annual dividend of:
2) A company issued 600 shares of $50 par value stock for $45,000. The total amount of contributed capital is:
3) A corporation declared and issued a 15% stock dividend on November 1. Prior to the dividend, the balance in retained earnings was $850,000, the number of shares of $5 par value stock issued and outstanding was 60,000, and the market value of the stock was $12. The amount of the change in total stockholders' equity as a result of recording this stock dividend is:
Explanation / Answer
1) Calculate preferred stockholders received per share annual dividend = 9*5% = 0.45 per share
2) Total contributed capital = 45000
3) The amount of the change in total stockholders' equity as a result of recording this stock dividend is:
No change in Total amount of stockholder's equity
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