The following information was taken from the statement of shareholders' equity of Kidd Sports as of December 31, 2012. The par value of Kidd stock is $1, and as of the beginning of 2012, the company held 1,500 shares in treasury.

(a) Kidd issued common stock at one time prior to 2012. How many shares were issued and at what price per share?(b) Kidd purchased treasury stock at one time prior to 2012. How many shares were purchased and at what price?(c) At what price were the stock options exercised, and how did that price compare to market value of Kidd stock at the time? Assume that the stock options were exercised immediately prior to the issuance of the stock dividend, which was recorded at market value.(d) Compute the per-share dividends rate paid by Kidd during 2012, assuming that the cash dividends were declared prior to the stock dividend but after the stock options were exercised.

Transcribed Image Text:

Common Stock Additional Paid-In Capital Retained Treasury Stock Earnings Beginning balances Exercised stock options S8.000 532.000 527.000 S18,000 (3.000) (2.750) Net income Cash dividends Stock dividend Ending balances 5.600 (3.500) (10,500) $15,850 9,800 700 S8,700 $41,800 S15,000