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The year-end balance sheet of Smithfield Products includes the following stockho

ID: 2380028 • Letter: T

Question

The year-end balance sheet of Smithfield Products includes the following stockholders' equity section
(with certain details omitted):

How many shares of preferred stock have been issued?

What is the total amount of the annual dividends paid to preferred stockholders? (Round intermediate calculations to 2 decimal places. Omit the "$" sign in your response)

How many shares of common stock are outstanding?

What was the average issuance price per share of common stock? (Round your answers to 2 decimal places. Omit the "$" sign in your response)

What is the amount of legal capital? (Omit the "$" sign in your response)

What is the total amount of paid-in capital? (Omit the "$" sign in your response)

What is the book value per share of common stock? (There are no dividends in arrears.) (Round your answers to 2 decimal places. Omit the "$" sign in your response)

Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.)

   Stockholders' equity:    71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized $ 2,500,000      Common stock, $2 par value, 900,000 shares authorized 900,000      Additional paid-in capital: Common stock 7,500,000      Retained earnings 2,595,000          Total stockholders' equity $ 13,495,000  

Explanation / Answer

a. 25,000

b. 187,500.00

c. 450,000

d. 18.67

e. 3,400,000

f. 10,900,000

g. 24.43

h. 4.65