Question

The stockholders’ equity section of The Seventies Shop is presented here.
THE SEVENTIES SHOP
Balance Sheet (partial)
($ in thousands)
Stockholders’ equity:
Preferred stock, $50 par value ........ $ –0–
Common stock, $5 par value ........ 20,000
Additional paid-in capital ......... 100,000
Total paid-in capital ........... 120,000
Retained earnings ............ 53,000
Treasury stock ............... (3,700)
Total stockholders’ equity .......... $169,300

Required:
Based on the stockholders’ equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands.
1. How many shares of preferred stock have been issued?
2. How many shares of common stock have been issued?
3. Total paid-in capital is $120 million. At what average price per share were the common shares issued?
4. If retained earnings at the beginning of the period was $45 million and net income during the year was $9,907,500, how much was paid in dividends for the year?
5. If the treasury stock was reacquired at $20 per share, how many shares were reacquired?
6. How much was the dividend per share?



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  • CreatedJuly 15, 2014
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