Question Find missing amounts, net income, issue price & dividends; interpret stock dividend & split Bacon, Inc., has the following owners' equity section in its May 31, 2009, comparative balance sheets:
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31-May-09
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30-Apr-09
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Paid-In capital:
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Preferred stock, $120 par value, 8%, cumulative, 100,000 shares authorized 80,000 shares issued and outstanding.................
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$9,600,000
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$9,600,000
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Common stock, $6 par value, 600,000 shares authorized, 400,000 and 380,000 shares issued, respectively...................................
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?
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2,280,000
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Additional paid-in capital..............................................................
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16,800,000
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16,480,000
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Retained earnings ........................................................................................
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13,900,000
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13,624,000
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Less: Treasury common stock, at cost; 18,000 shares and 17,000 shares, respectively ...................................................................................................
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-1,660,000
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-1,632,000
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Total stockholders' equity ...........................................................................
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mce_markernbsp; ?
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$40,352,000
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Suppose that instead of the stock dividend explained in f, the board of directors authorized A 2-for-1 stock split on June 1 when the market rate of the common stock was 36 dollar per share.
[A] Find the market price per share of common stock after the split?
[B] Find the par value, and how many shares of common stock will be authorized after the split?
[C] How many shares of common stock will be in the treasury after the split?