Stockholders’ equity:   Capital stock:    7% cumulative preferred stock, $100 par value $ 15,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued and outstanding   20,000,000 Additional paid-in capital:    Common stock   44,000,000 Retained earnings   64,450,000  Total stockholders’ equity What is the total amount of the annual dividends to which preferred stockholders are entitled? What was the average issuance price per share of common stock?  What is the amount of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is it possible to determine the fair market value per share of common stock from the stockholders’ equity section? Explain.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEA: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity...
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Stockholders’ equity:  
Capital stock:  
 7% cumulative preferred stock, $100 par value $ 15,000,000

Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued and outstanding

  20,000,000
Additional paid-in capital:  
 Common stock   44,000,000
Retained earnings   64,450,000
 Total stockholders’ equity

What is the total amount of the annual dividends to which preferred stockholders are entitled?
What was the average issuance price per share of common stock? 

What is the amount of legal capital and the amount of total paid-in capital?

What is the book value per share of common stock, assuming no dividends in arrears?

Is it possible to determine the fair market value per share of common stock from the stockholders’ equity section? Explain.

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