Problem 8-23 Analyzing the Stockholders’ Equity Section of the Balance Sheet
The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2011, is as follows:
AND SO ON
Note: The market value per share of the common stock is $25, and the market value per share of the preferred stock is $12.
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. Explain the difference between the average issue price and the market price of the common stock.
6. If Atkins declared a 2-for-1 stock split on the common stock, how
many shares would be outstanding after the split? What amount would be
transferred from the retained earnings account because of the stock
split? Theoretically, what would be the market price of the common stock
immediately after the stock split?
Check:
a. Par Value per Share: $10
b. Dividend per Share $.60
Click here for the solution: The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2011, is as follows
