The stockholders' equity section of the balance sheet for Gator Company at December 31, 2014, is as

Question:

The stockholders' equity section of the balance sheet for Gator Company at December 31, 2014, is as follows:

Stockholders' Equity

Paid-in capital

Preferred stock? par value, 6% cumulative,

250,000 shares authorized, 55,000 shares issued and outstanding $ 550,000. Common stock, $20 stated value, 300,000 shares authorized, 55,000 shares issued and? outstanding 1,100,000

Paid-in capital in excess of par - Preferred 45,000

Paid-in capital in excess of stated value - Common 165,000

Total paid-in capital 1,860,000

Retained earnings 400,000

Treasury stock, 8,000 shares (40,000)

Total stockholders' equity $ 2,220,000

The market value per share of the common stock is $40, and the market value per share of the preferred stock is $27?

Required

a. What is the par value per share of the preferred stock?

b. What is the dividend per share on the preferred stock? (Round your answer to 2 decimal places.)

c. What is the number of common stock shares outstanding?

d. What was the average issue price per share (price for which the stock was issued) of the common stock? (Round your answer to 2 decimal places.)

f. If Gator declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the Retained Earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split?

Common Stock
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
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