The stockholders\' equity section of the balance sheet for Mann Equipment Co at

Question

The stockholders' equity section of the balance sheet for Mann Equipment Co at December 31, 2016, is as follows Stockholders' Equity Paid-in capital Preferred stock, ? par value, 6% cumulative, 250,000 shares authorized, 55,000 shares issued and outstanding Common stock, $20 stated value, 300,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value -Common S 550,000 1,100,000 45,000 165,000 Total paid-in capita Retained earnings ,860,000 400,000 Total stockholders' equity $2,260,000 Note The market velue per share of the common stock is $40, and the market value per share of the preferred stock is $27 Required a. What is the par value per share of the preferred stock? Par value per share b. What is the dividend per share on the preferred stock? (Round your answer to 2 decimal places.) per share What was the average issue price per share (price for which the stock was issue stock? (Round your answer to 2 decimal places) c. of the common Average issue price per share e. If Mann declares a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained eamings account because of the stock split? Theoretically, what will be the market price of the common stock immedistely after the stock split? Shares outstanding after the spit Amount transferred form retained earningS Market price of common stock after split

Explanation / Answer

a. par value per share 550,000/55000 10 answer b. Dividend per share on the preferred stock $10 par value*6% 0.6 answer c. Average issue price per share (1,100,000+165000)/55000 23 answer e. shares outstanding after the split 110000 amount transferred from retained earnings 0 market price of common stock after split 20

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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