Reference no: EM132562902

Walker Inc. has the following capital structure

Preferred Stock: $25 par value, 10,000 shares authorized= $180,000

preferred issued shares= $ 7200

Common Stock: $10 Par value, 100,000 shares authorized = $900,000

common issued shares = $ 90,000

Total Paid in capital= $1,080,000

Retained Earnings= $550,000

Total Stock holders' equity= $1,630,000

The number of issued and outstanding shares of both preferred and common stock have been the same for last two years. Dividends on preferred stock are 8 percent of par value and have been paid each year the stock was outstanding except for the immediate past year. In the current year the Management declares a dividend of $60,000.

Question a. Indicate the amount of dividends that will be paid to both common and preferred stockholders assuming

i. Preferred stock is cumulative

ii. Preferred stock is non-cumulative

Question b. What was the average issuance price per share of common stock?

Question c. What is the amount of legal capital and paid-in capital?