The stockholders equity section of the balance sheet for Quinn Equipment Co. at December 31, 2013, is

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The stockholders’ equity section of the balance sheet for Quinn Equipment Co. at December 31, 2013, is as follows:


The stockholders’ equity section of the balance sheet for Quinn


The market value per share of the common stock is $40, and the market value per share of the preferred stock is $28.

Required
a. What is the par value per share of the preferred stock?
b. What is the dividend per share on the preferred stock?
c. What was the average issue price per share (price for which the stock was issued) of the common stock?
d. Explain the difference between the par value and the market price of the preferred stock.
e. If Cross declares a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stocksplit?

Balance Sheet
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
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  book-img-for-question

Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

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