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?