Sweetwater Company reports the following stockholders equity section of the balance sheet Preferred stock, $50 par value, 8 cumulative $ 2,500,000 Common stock , $2 par value 800,000 Paid in capital in excess of par value, common stock 11,000,000 Retained earnings 4,894,000 Total $19,194,000 a How ...

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Sweetwater Company reports the following stockholders equity section of the balance sheet. Preferred stock, $50 par value,

Question:

Sweetwater Company reports the following stockholders’ equity section of the balance sheet.
Preferred stock, $50 8% cumulative ........ $ 2,500,000
, $2 ............... 800,000
Paid-in capital in excess of common stock ..... 11,000,000
Retained earnings .................. 4,894,000
Total ....................... $19,194,000

a. How many preferred shares are outstanding?
b. How many common shares are outstanding?
c. At what average price was the common stock sold?
d. If the firm declares dividends totaling $376,000, what amount per share will be paid to the preferred stockholders and what amount per share will be paid to common stockholders?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...