Acc101 Financial Accounting: E11-5 The year-end balance sheet of Jackson Products

Acc101 Financial Accounting

E11-5
The year-end balance sheet of Jackson Products, Inc., includes the following stockholders' equity section (with certain details omitted):
Stockholders' equity:
Capital stock:
7% cumulative preferred stock, $100 par value 15,000,000
Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued 20,000,000
Additional paid-in capital: Common stock 44,000,000
Retained earnings 64,450,000
Total stockholders' equity $143,450,000

From this information, compute answers to the following questions:
a. How many shares of preferred stock have been issued?
b. What is the total amount of the annual dividends paid to preferred stockholders?
c. What was the average issuance price per share of common stock?
d. What is the amount of legal capital and the amount of total paid-in capital?
e. What is the book value per share of common stock?
f. Is it possible to determine the fair market value per share of common stock from the holders' equity section above? Explain.
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