You own 5,000 shares of $4 par value common stock of Cohen & Cohen Hardware Corp. The

Question:

You own 5,000 shares of $4 of Cohen & Cohen Hardware Corp. The company has 50,000 shares of outstanding. Cohen & Cohen does not have any other classes of stock outstanding.
Required:
(a) If Cohen & Cohen declares a cash of $30,000, how much of this can you expect to receive? What is the amount of per share?
(b) If Cohen & Cohen decides to sell an additional 14,000 shares of common stock, how many of these shares will you be entitled to purchase? Explain.
(c) Presently, Cohen & Cohen’s total stockholders’ equity is $3,200,000, and the company’s is trading for $71 per share on a major stock exchange. What is the total ‘‘value’’ of the Cohen & Cohen shares that you own? What is the book value of each of your shares? Is either of these amounts equal to the amount you paid for the shares? Explain.
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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... 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,...