BARRELL CORPORATION Partial Balance Sheet December 31, 2014 Stockholders\' equit

Question

BARRELL CORPORATION Partial Balance Sheet December 31, 2014 Stockholders' equity Paid-in capital Capital stock 6% Preferred stock, $25 par value, cumulative, shares issued.... $1,000,000 Common stock, no par, $40 -shares stated value, issued, and standing 2,800,000 $3,800,000 shares out- Total capital stock. Additional paid-in capital In excess of par value- 45,000 In excess of stated value- common stock ..c 1050.000 Total additional paid-in capital.n Total paid-in capital.sese 1.095,000 4,895,000 1684.00 Retained earnings Total paid-in capital and retained earnings 6,579,000 Less: Treasury stock (14,000 common shares).o Total stockholders' equity. 98,000 $6,481,000 Please answer the below questions based on the above partial balance sheet: a e%. ow many shares of prefered sock re u 0 000 1,000, 00 00,0oa 2ers2. How many shares of common stock are outstanding 56 000 rs2. How many shares of common stock are outstanding G.SoO 3ers 3. What is the average share price that the common stock was issued at $55 14,06 (assume only one issuance of common stock was done) 70,on NO preferred stock dividends were issued the prior two years. ThisyeaReardof directors are declaring dividends of $1,800,000. 3IT 4. Based on the above informatjon how much per share will each common stockholder get in dividends this year 199 0 1.5 x10,000 60,000

Explanation / Answer

Requirement 2:

Shares of Common Stock outstanding:

Number of shares issued (2800000/40) 70000

Less: Treasury Stock (14000)

Outstanding Shares 56000

Requirement 3:

Average Share Price of Common Stock Issued:

Stated Value of Common Stock $2800000

Additional Paid in capital in excess of stated value $1050000

Total Issued Value of Common Stock $3850000

Number of shares issued 70000

Average share price of common stock issued (3850000/70000) $55

  

Requirement 4:

Dividends declared = $1800000

Less: Dividend on preferred Stock,

This year 1000000*6% =($60000)

Arrears 60000*2 = ($120000)

Dividends to Common Stockholders = $1620000

Outstanding Common Stock Shares 56000

Dividend per share of common stock (1620000/56000) = $28.928

Dividend per share to common stockholders (1740000/70000) = $24.857

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