Question 1

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share,and (2)common share.

Accepted Answer

The answer of A company has $2,400,000 in stockholders' equity...

Question 2

A company's stock is selling for $35 per share at year-end.This current year it paid shareholders a $2.45 per share cash dividend,reported earnings per share of $12.00,and had 750,000 common shares outstanding at year-end.Calculate the company's dividend yield.

Accepted Answer

The answer of A company's stock is selling for $35...

Question 3

A company reported net income of $850,000 for the current year.The year-end market price per common share was $12 and there were 425,000 weighted-average shares of common stock outstanding.Calculate the company's price-earnings ratio.

Accepted Answer

The answer of A company reported net income of $850,000...

Question 4

A company has 500,000 common shares authorized,400,000 common shares issued,and 15,000 common shares in treasury stock at the current year-end.It paid $0.24 per share in cash dividends during the year.The year-end market price of the stock is $15.Calculate (1)the total dividends paid and (2)the dividend yield.

Accepted Answer

The answer of A company has 500,000 common shares authorized,400,000...

Question 5

A company paid a cash dividend of $0.44 per share during the current year,and reported 18,000 shares of common stock issued,and 2,000 common shares in treasury stock during the current year.The year-end market price per share was $27.50.Calculate the following:
 (1)total amount of cash dividends paid to common shareholders,and (2)dividend yield.

Accepted Answer

The answer of A company paid a cash dividend of...

Question 6

A corporation reported net income of $3,730,000 and paid preferred cash dividends of $100,000 during the current year.There were 600,000 weighted-average shares of common stock outstanding and the market price per common share was $88.33 at year-end.Calculate the company's price-earnings ratio.

Accepted Answer

The answer of A corporation reported net income of $3,730,000...

Question 7

A company's stock is selling for $67.20 per share and its earnings per share is $3.50 for the current year.Calculate the price-earnings ratio.

Accepted Answer

The answer of A company's stock is selling for $67.20...

Question 8

A company reported net income of $478,000 and paid $5,500 in preferred cash dividends during the current year.The company had 100,000 common shares issued,and 10,000 common shares in treasury during the year.The year-end market price per common share was $43.05.Calculate the company's price-earnings ratio.

Accepted Answer

The answer of A company reported net income of $478,000...

Question 9

The stockholders' equity section of a corporation's balance sheet follows:
  (1)Assuming that the preferred stock is not callable and no dividends are in arrears,compute the book values per preferred share and per common share.
(2)Assuming that the preferred stock has a call price of $30 per share and one year of cumulative preferred dividends is in arrears,compute the book values per preferred share and per common share.

Accepted Answer

The answer of The stockholders' equity section of a corporation's...

Question 10

A company is authorized to issue 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

Accepted Answer

The answer of A company is authorized to issue 750,000...

Question 11

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year:
  Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 12

A corporation reports the following year-end stockholders' equity:
  Determine the following:
(1)Par value for the preferred stock.
(2)Book value per share for both preferred stock and common stock assuming a call price per share of $52 for preferred and no dividends in arrears.

Accepted Answer

The answer of A corporation reports the following year-end stockholders'...

Question 13

A corporation paid a cash dividend of $0.07 per share during the current year.It had 550,000 common shares outstanding at year-end,its current year earnings per share was $3.85,and the stock's year-end market price was $17.50 per share.Calculate the company's dividend yield.

Accepted Answer

The answer of A corporation paid a cash dividend of...

Question 14

The stockholders' equity section of a company's year-end balance sheet follows:
  The preferred stock has a call price of $103 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

Accepted Answer

The answer of The stockholders' equity section of a company's...

Question 15

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend during the current year:
  Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 16

On August 1,a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land having a market value of $215,000.The common stock has a stated value of $10 per share.Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On August 1,a corporation issued 15,000 shares...

Question 17

A company reported earnings per share of $9.75,paid a $6.00 cash dividend per share to preferred shareholders,and paid a $0.54 cash dividend per share to common shareholders.There were 1,000 shares of preferred stock outstanding and 6,000 shares of common stock outstanding during the year,and the market price per share of common stock was $45.Calculate the company's dividend yield for common stock.

Accepted Answer

The answer of A company reported earnings per share of...

Question 18

A company has $100,000 of 10% noncumulative,nonparticipating,preferred stock outstanding,and $150,000 of common stock outstanding.In the company's first year of operation,no dividends were paid,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1)preferred shares and (2)common shares.

Accepted Answer

The answer of A company has $100,000 of 10% noncumulative,nonparticipating,preferred...

Question 19

A company reported $990,000 in net income for the current year.Total weighted-average number of common shares outstanding are 150,000 shares,and the year-end market price is $79.20 per common share.Calculate the company's price earnings ratio.

Accepted Answer

The answer of A company reported $990,000 in net income...

Question 20

A corporation has $1,750,000 in stockholders' equity and 350,000 weighted-average shares of common stock outstanding.Calculate the book value per common share.

Accepted Answer

The answer of A corporation has $1,750,000 in stockholders' equity...

Quiz 13: Accounting for Corporations