The following information pertains to Parsons Co. Preferred stock, cumulative: Par value per share.................................................$100 Dividend rate.........................................................8% Shares
Question:
The following information pertains to Parsons Co.
Preferred stock, cumulative:
Par value per share.................................................$100
Dividend rate.........................................................8%
Shares outstanding..............................................10,000
Dividends in arrears...............................................none
Common stock:
Par value per share...................................................$10
Shares issued....................................................120000
Dividends paid per share.........................................$2.10
Market price per share..........................................$48.00
Additional paid-in capital...................................$500,000
Un-appropriated retained earnings (after closing).......$270,000
Retained earnings appropriated for contingencies......$300,000
Common treasury stock:
Number of shares...............................................10,000
Total cost.....................................................$250,000
Net income...................................................$630,000
Instructions
Compute (assume no changes in balances during the past year):
(a) Total amount of stockholders' equity in the balance sheet
(b) Earnings per share of common stock
(c) Book value per share of common stock
(d) Payout ratio of common stock
(e) Return on common stock equity
Common StockCommon 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...
Step by Step Answer:
a 10000 100 120000 10 500000 270000 300000 250000 3020000 b ...View the full answer
