The stockholders\' equity of a corporation is composed of 10,000 shares of $5 pr

Question

The stockholders' equity of a corporation is composed of 10,000 shares of $5 preferred stock, $50 par value, $500,000; paid in capital in excess of par-preferred stock, $15,000; common stock, 100,000 shares, $10 par, $1,000,000; paid in capital in excess of par-common stock, $100,000; retained earnings beginning of the period, $80,000. The net income is $75,000. The paid in capital attributable to preferred stock is ? The paid in capital attributable to common stock is? The total amount available for common dividends is? The earnings per share of common stock is?

Explanation / Answer

The paid in capital attributable to preferred stock = 500000 + 15000 = 515000 The paid in capital attributable to common stock is = 1000000 + 100000 = 1100000 Total Amount available for common dividends is = 155000 EPS = 75000/1000000 = .075

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