Problem 11-26A Analyzing the stockholders' equity section of thebalance sheet LO 11-2, 11-3, 11-7
The stockholders’ equity section of the balance sheet for MannEquipment Co. at December 31, Year 1, is as follows
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| Stockholders’ Equity | | | | | | |
| Paid-in capital | | | | | | |
Preferred stock, ? par value, 4% cumulative,
240,000 shares authorized, 54,000 shares issued andoutstanding | $ | 540,000 | | | | |
Common stock, $30 stated value, 290,000 shares
authorized, 54,000 shares issued and outstanding | | 1,620,000 | | | | |
| Paid-in capital in excess of par—Preferred | | 44,000 | | | | |
| Paid-in capital in excess of stated value—Common | | 108,000 | | | | |
| Total paid-in capital | | | | | 2,312,000 | |
| Retained earnings | | | | | 390,000 | |
| Total stockholders’ equity | | | | $ | 2,702,000 | |
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Note: The market value per share of the common stock is$56, and the market value per share of the preferred stock is$26.
Required
a. What is the par value per share of thepreferred stock?
b. What is the dividend per share on the preferredstock? (Round your answer to 2 decimalplaces.)
c. What was the average issue price per share(price for which the stock was issued) of the common stock?(Round your answer to 2 decimal places.)
e. If Mann declares a 2-for-1 stock split on thecommon stock, how many shares will be outstanding after the split?What amount will be transferred from the retained earnings accountbecause of the stock split? Theoretically, what will be the marketprice of the common stock immediately after the stock split?
