The following is information related to the stockholders' equity of Novake Corporation as of December 31, 2010:

8% cumulative preferred stock, $100 at par,

100,000 authorized shares, 7,000 issued shares.................................................. $700,000

Common shares, $3 par, 1,000,000 shares authorized,

500,000 shares issued and outstanding .................................................. ...... ............ 1,500,000

Premium on placement of shares: preferred shares .................................. ........ .....400,000

Premium on placement of shares: ordinary shares .................................. ........ ...... 500,000

Retained earnings................................................ ...................................... 800,000

From the above information, calculate the following:

1 The total amount of legal capital: $__________

2 The total amount of paid-in principal: $__________

3 The average issue price per share of preferred stock: $_____ per share

4 Book value per common share (assuming current year preference dividends have been paid) $_____ per share

5 The retained earnings balance at the beginning of the year was $650,000 and there were no past-due dividends. Net income for 2010 was $475,000. What was the amount of the dividend declared on each common share during 2010? $_____ per share

Answer rating: 100% (QA)

1 Total Legal amount of Capital 700000 1500000 2200000 2 Total amount of paid up capital ... View the full answer