The following is a statement of common shareholders' equity with some numbers missing (in millions of dollars).

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The following is a statement of common shareholders' equity with some numbers missing (in millions of dollars).

Balance, December 31, 2011 ................................................... ?

Net income ................................................................................ ?

Common dividends ........................................................... (132)

Preferred dividends ............................................................. (30)

Issue of common stock ....................................................... 155

Unrealized gain on securities held for sale ........................ 13

Foreign currency translation loss ........................................ (9)

Balance, December 31, 2012 .................................................. ?

a. The market value of the equity was $4,500 million at December 31, 2011, and $5,580 million at December 31, 2012. At both dates, the equity traded at a premium of $2,100 million over the book of the common equity. What was net income for 2012?

b. Fill out the missing numbers in the equity statement and reformulate it to identify comprehensive income for the common shareholders for 2012.

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...
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