Question 1 The following information pertains to Parsons Co.: Preferred stock, c

Question

Question 1 The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share Dividend rate Shares outstanding Dividends in arrears $100 8% 11,000 none Common stock: Par value per share Shares issued Dividends paid per share Market price per share $10 115,000 $2.00 $47.00 $500,000 $260,000 $320,000 Additional paid-in capital Unappropriated retained earnings (after closing) Retained earnings appropriated for contingencies Common treasury stock: Number of shares 11,000 $260,000 $630,000 Total cost Net income ssume no changes in balances during the past vear): (Round per share and ratios to 2 decimal places, e.g. $15.25 or 15.25

Explanation / Answer

a) (11000*100)+(115000*10)+500000+260000+320000-260000 = 3070000

b) 630000-(11000*100*8%)/115000-11000 = 5.2115 per share

c) 3070000-1100000/115000-11000 = 18.942

d) 2/5.2115 = 38.38%

e) (630000-11000*100*8%)/3070000-1100000 = 27.513%

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