Reference no: EM132784005
Question - The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows.
Stockholders' Equity Paid-in capital Preferred stock,? par value, 6% cumulative, 110,000 shares authorized, 41,000 shares issued and outstanding $410,000
Common stock, $20 stated value, 160,000 shares authorized, 41,000?? shares issued and outstanding 820,000
Paid-in capital in excess of par-Preferred 31,000
Paid-in capital in excess of stated value-Common 82,000
Total paid-in capital 1,343,000
Retained earnings 260,000
Treasury stock, 3,000 shares (21,000)
Total stockholders' equity $1,582,000
Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $13.
Required -
1. What is the par value per share of the preferred stock?
2. What is the dividend per share on the preferred stock?
3. What is the number of common stock shares outstanding?
4. What was the average issue price per share (price for which the stock was issued) of the common stock?
5. If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stock split?