Problem 11-5A Computation of book values and dividend allocations L.O. C3, A4, P4
[The following information applies to the questions displayed below.]
Folsom Corporation's common stock is currently selling on a stock exchange at $183 per share, and its current balance sheet shows the following stockholders' equity section.
Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding
$85,000
Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding
200,000
Retained earnings
350,000
Total stockholders' equity
$635,000
Problem 11-5A Requirement 1
Requirement 1:
What is the current market value (price) of this corporation's common stock? (Omit the "$" sign in your response.)
Market price $ per share
Problem 11-5A Requirement 2
Requirement 2:
What are the par values of the corporation's preferred stock and its common stock? (Omit the "$" sign in your response.)
Par value of the corporation's preferred stock $
Par value of the corporation's common stock $
Problem 11-5A Requirement 3
Requirement 3:
If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock? (Round your answers to 1 decimal place. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 4
Requirement 4:
If two years' preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 5
Requirement 5:
If two years' preferred dividends are in arrears and the preferred stock is callable at $95 per share, what are the book values per share of the preferred stock and the common stock? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 6
Requirement 6:
If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $24,750, what total amount will be paid to the preferred and to the common shareholders? What is the amount of dividends per share for the common stock? (Omit the "$" sign in your response.)
Total amount paid to the preferred shareholders $
Total amount paid to the common shareholders $
Dividends per share for the common stock $
[The following information applies to the questions displayed below.]
Folsom Corporation's common stock is currently selling on a stock exchange at $183 per share, and its current balance sheet shows the following stockholders' equity section.
Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding
$85,000
Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding
200,000
Retained earnings
350,000
Total stockholders' equity
$635,000
Problem 11-5A Requirement 1
Requirement 1:
What is the current market value (price) of this corporation's common stock? (Omit the "$" sign in your response.)
Market price $ per share
Problem 11-5A Requirement 2
Requirement 2:
What are the par values of the corporation's preferred stock and its common stock? (Omit the "$" sign in your response.)
Par value of the corporation's preferred stock $
Par value of the corporation's common stock $
Problem 11-5A Requirement 3
Requirement 3:
If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock? (Round your answers to 1 decimal place. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 4
Requirement 4:
If two years' preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 5
Requirement 5:
If two years' preferred dividends are in arrears and the preferred stock is callable at $95 per share, what are the book values per share of the preferred stock and the common stock? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Book value per share of the preferred stock $
Book value per share of the common stock $
Problem 11-5A Requirement 6
Requirement 6:
If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $24,750, what total amount will be paid to the preferred and to the common shareholders? What is the amount of dividends per share for the common stock? (Omit the "$" sign in your response.)
Total amount paid to the preferred shareholders $
Total amount paid to the common shareholders $
Dividends per share for the common stock $