Convertible PKR 10 preferred stock, PKR200 par value, 1,000,000 shares authorized; 345,000 shares
issued and outstanding ……………… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PKR 69,000
Common stock, par value PKR0.50; 25,000,000 shares authorized. . . . . . . .. . . . . . . . . . . 6,819
Additional paid-in capital . . . . . . . . . . . . . . . .…………………………….. . . . . . . . . . . . . . . . 87,260
Retained earnings.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …………………... . 57,263
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PKR220,342
Requirements
a. How many shares of common stock have been issued?
b. What is the total amount of the annual dividends paid to preferred stockholders?
c. What is the total amount of paid-in capital?
d. What is the book value per share of common stock?
e. Briefly explain the advantages and disadvantages of being publicly owned rather than operating as a closely held.

f. What is meant by the term convertible used in the caption of the preferred stock? Is there any more information that investors need to know to evaluate this conversion feature?
g. Assume that the preferred stock currently is selling at PKR248 per share. Does this provide a higher or lower dividend yield than an 8 percent, PKR50 par value preferred with a market price of PKR57 per share? Show computations (round to the nearest tenth of 1 percent). Explain why one preferred stock might yield less than another.

Answer rating: 100% (QA)

A shares of common stock that have been issued 681905 13638 shares B total amount of the annual dividends paid to preferred stockholders 345000 x 10 3... View the full answer