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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Analyzing the stockholders’ equity section of the balance sheet The balance sheet of Ballcraft, Inc., reported the following:
|
Preferred stock, $8 par, 5%, |
 |
|
4,000 shares authorized and issued |
$32,000 |
|
Common stock, $2.50 par value, 41,000 shares authorized; |
 |
|
16,000 shares issued |
40,000 |
|
Paid-in capital in excess of par—common |
225,000 |
|
Total paid-in capital |
297,000 |
|
Retained earnings |
40,000 |
|
Total stockholders’ equity |
$337,000 |
Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Ballcraft common stock was $31 per share.
Requirements
1. Is the preferred stock cumulative or noncumulative? How can you tell?
2. What is the total paid-in capital of the company?
3. What was the total market value of the common stock?
4. Compute the book value per share of the common stock.
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