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How many shares of preferred stock have been issued? (Enter you answer in total

ID: 2722750 • Letter: H

Question

How many shares of preferred stock have been issued? (Enter you answer in total number of shares, not in thousands.)

2.

How many shares of common stock have been issued? (Enter you answer in total number of shares, not in thousands.)

If the common shares were issued at $15 per share, at what average price per share were the preferred shares issued?

If retained earnings at the beginning of the period was $235 million and $15 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in millions.)

1.

How many shares of preferred stock have been issued? (Enter you answer in total number of shares, not in thousands.)

2.

How many shares of common stock have been issued? (Enter you answer in total number of shares, not in thousands.)

   3.

If the common shares were issued at $15 per share, at what average price per share were the preferred shares issued?


4.

If retained earnings at the beginning of the period was $235 million and $15 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in millions.)


5. What was the average cost per share of the treasury stock acquired? The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) ($ and shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital $4,500 15,000 363,000 Total paid-in capital Retained earnings Treasury stock, 10,000 common shares 382,500 273,000 (170,000) Total stockholders' equity 485,500

Explanation / Answer

How many shares of preferred stock have been issued?

Answer

4,500,000 / 1par value = 4,500,000 shares issued

How many shares of common stock have been issued?

Answer

15,000,000/1 par value = 15,000,000shares issued

If the common shares were issued at $15 per share, at what average price per share were the preferred shares issued?

$15,000,000 / $1 par value = 15,000 ,000common shares issued
$14 Additional paid-in capital, common stock x 15,000,000 = $210,000 ,000total common additional paid-in capital.
363,000,000 - 210,000,000 = $153,000,000 preferred additional paid-in capital
(153,000,000 + 4,500,000) / 4,500,000 = $35 issue price for preferred shares.

If retained earnings at the beginning of the period was $235 million and $15 million was paid in dividends during the year, what was the net income for the year?

Beg. Balance + Net income - Dividends = End. Balance
235,000,000 + Net income - 15,000,000 = 273,000,000
Net income = $53,000,000

5. What was the average cost per share of the treasury stock acquired?
If treasury stock cost $170,000,000 for 10,000,000 common shares, average cost per share = $170,000,000 / 10,000,000 = $17

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