Preferred stockPar valueSale priceFlotationcostAnnual dividend A $ 100 $ 101 $ 9.0011% B 40 38 $ 3.508% C 35 37 $ 4.00 $ 5.00 D 30 265% of par $ 3.00 E 20 20 $ 2.509%Stock B Par value $ 40Sale price $ 38Flotation cost $ 3.50Annual dividend8%Dividend payment Proceed from sale Cost of preferred stock By using cell references calculate the dividend payment of preferred Stock B.By using cell references calculate the proceeds from sale of referred stock B.By using cell references calculate the cost of preferred stock B.

Par value = $ 40 Sale price = $ 38 Flotation cost = $ 3.50 Annual dividend rate = 8%

Answered: Preferred stock Par value Sale price…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 86PSA: Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets...

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Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock A
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references calcualte the cost of preferred stock A
Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock E Par value $              20 Sale price $              20 Flotation cost $           2.50 Annual dividend 9% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calucalte the dividend payment of preferred stock E. By using cell references to the given data calculate the proceeds from sale of preferred stock E. By using cell references to the given data calculate the cost of preferred stock E.
Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock C Par value $              35 Sale price $              37 Flotation cost $           4.00 Annual dividend $           5.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock C. By using cell references to the given data calucalte the cost of preferred stock C.
Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock D Par value $              30 Sale price $              26 Flotation cost (% of par) 5% Flotation cost Annual dividend $           3.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the flotation cost of preferred stock D. By using cell references to the given data calculate the proceeds from sale of preferred stock D. By using cell references to the given data calculate the cost of preferred stock D.
Calcualte the Cost of Preferred Stock: Par value = $100 Annual dividend = 7.5% of par Market value = $102 Flotation cost = 4%
DETAILS DR($) CR($) 1 Land Common Stock(300,000x$1) Paid in Capital in excess of Par-common stock (to record the issue of share) 1,200,000 300,000 900,000 11. Cash(120,000 shares x$1 par value) Common Stock (to record the issue of Common Stock) 120,000 120,000 111. Cash(25,500.00 shares x$20 per share) Preferred Stock (to record the issue of preferred stock) 510,000 510,000.00 1v. Income Summary To Retained Earning 764,000 764,000 v. No transaction dividend has already been paid. V1. No transaction Dividend has already been paid. Prepare the closing entries for these transactions
Common stock ($5 par) $21,100 Pd in capital in excess of par 110,200 Retained earning 155200 For each of the following tranactions indicate the dollar impact if any on the following 5 items 1) total assets 2) common stock 3) paid in capital in excess of par 4)retained earning 5) stockholders equity a) Sage declares and issues a 10% stock dividend when the market price of the stock is $13 per share b) Sage declare and issue a 27% stock dividend when the market price of the stock is $15 per share c) Sage declare and distributes a property dividend Sage gives one share of its equity investment (ABC stock) for every 2 shares of Sage Company of stock held. Sage owns 9800 shares of ABC. ABC is selling for $9 per share on the date the property dividend is declared.
Long 1 lot Syarikat XYZ stock @ RM 15Long 1, 3-month Syarikat XYZ put @ RM 0.15 B C D E Stock Price of maturity Value of long stock position Profit/loss to Long Put position @ 0.15 Value of combined position at maturity 4 10 -5000 4850 -150 5 11 -4000 3850 -150 6 12 -3000 2850 -150 7 13 -2000 1850 -150 8 14 -1000 850 -150 9 15 0 -150 -150 10 16 1000 -150 850 11 17 2000 -150 1850 12 18 3000 -150 2850 13 19 4000 -150 3850 14 20 5000 -150 4850 1. Based on table above Draw the payoff profile of combined positions and calculate: -Max Profit -Max Loss -Breakeven point
Long 1 lot Syarikat XYZ stock @ RM 15Long 1, 3-month Syarikat XYZ put @ RM 0.15 Stock Price of maturity Value of long stock position Profit/loss to Long Put position @ 0.15 Value of combined position at maturity 10 -5000 4850 -150 11 -4000 3850 -150 12 -3000 2850 -150 13 -2000 1850 -150 14 -1000 850 -150 15 0 -150 -150 16 1000 -150 850 17 2000 -150 1850 18 3000 -150 2850 19 4000 -150 3850 20 5000 -150 4850 1. Based on table above Draw the combined position graph and calcuate the: a. Max loss b. Max Profit c. Break even point
1. Land Common Stock(300,000x$1) Paid in Capital in excess of Par-common stock (to record the issue of share) 1,200,000 300,000 900,000 11. Cash(120,000 shares x$1 par value) Common Stock (to record the issue of Common Stock) 120,000 120,000 111. Cash(25,500.00 shares x$20 per share) Preferred Stock (to record the issue of preferred stock) 510,000 510,000 1V. Income Summary To Retained Earning 764,000 764,000 V. No transaction dividend has already been paid hence no record needed - - V1. No transaction Dividend has already been paid hence no record needed shift this data from these temporary accounts to reflect the retained earnings - -

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Preferred stock	Par value	Sale price	Flotation cost	Annual dividend
A	$ 100	$ 101	$ 9.00	11%
B	40	38	$ 3.50	8%
C	35	37	$ 4.00	$ 5.00
D	30	26	5% of par	$ 3.00
E	20	20	$ 2.50	9%

Stock B
Par value		$ 40
Sale price		$ 38
Flotation cost		$ 3.50
Annual dividend	8%
Dividend payment
Proceed from sale
Cost of preferred stock