Response to the following problem:
The year-end balance sheet of Smithfield Products includes the following stockholders' equity section (with certain details omitted):
Stockholders' equity:
71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized $ 2,700,000
Common stock, $2 par value, 900,000 shares authorized 900,000
Additional paid-in capital: Common stock 9,000,000
Retained earnings 2,595,000
Total stockholders' equity $ 15,195,000
From this information, compute answers to the following questions:
a. How many shares of preferred stock have been issued?
b. What is the total amount of the annual dividends paid to preferred stockholders?(Round intermediate calculations to 2 decimal places.)
c. How many shares of common stock are outstanding?
d. What was the average issuance price per share of common stock?(Round your answers to 2decimal places. )
e. What is the amount of legal capital?
f. What is the total amount of paid-in capital?
g. What is the book value per share of common stock? (There are no dividends in arrears.)(Round your answers to2decimal places. )
h. Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the dividend declared during the year oneach shareof common stock?
(Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.)(Round your intermediate and final answers to 2 decimal places.)