Reference no: EM132046196
Problem - The following information pertains to Parsons Co.:
Preferred stock, cumulative:
Par value per share $100
Dividend rate 8%
Shares outstanding 10,000
Dividends in arrears none
Common stock:
Par value per share $10
Shares issued 120,000
Dividends paid per share $2.10
Market price per share $48.00
Additional paid-in capital $500,000
Un-appropriated retained earnings (after closing) $270,000
Retained earnings appropriated for contingencies $300,000
Common treasury stock:
Number of shares 10,000
Total cost $250,000
Net income $630,000
Instructions - Compute (assume no changes in balances during the past year):
(a) Total amount of stockholders' equity in the balance sheet
(b) Earnings per share of common stock
(c) Book value per share of common stock
(d) Payout ratio of common stock
(e) Return on common stock equity
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