Exam 11: Reporting and Analyzing Equity

_____________________ preferred stock gives the issuing corporation the right to purchase or retire the stock from its holders at specified future prices and dates.

The price-earnings (PE) ratio is calculated by dividing ___________________________ by ________________________________.

A proxy is:

Dividend yield is defined as the market price per share of a company's stock divided by its earnings per share.

Freidman Corp.has 500,000 shares of $2 par value stock authorized,100,000 shares issued,and 50,000 shares outstanding.On June 1,2014,Jennings' Board of Directors declared a 50% stock dividend.At that time,the stock had market value of $10.How would the company record this transaction?

A company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations: May 5 Exchanged 2,000 shares of preferred stock for a building with a market value of $135,000. July 20 Sold 1,550 shares of preferred stock for $50 cash per share. Dec.20 Sold 1,000 shares of preferred stock at $55 cash per share.

A premium on common stock:

A company has $2,400,000 in stockholders' equity,that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1) preferred share and (2) common share.

A company's outstanding stock consists of (a) 17,000 shares of noncumulative 7.5% preferred stock with a $10 par value and (b) 42,500 shares of common stock with a $1 par value.During its first four years of operation,the corporation declared and paid the following total cash dividends: -What amount of dividends will common stockholders receive in 2014?

Explain the preparation of journal entries to record the issuance of par value,stated value,and no-par value common stock.

______________________________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

A company has 3,000 shares of $2 par value common stock and 1,500 shares of 8%,$150 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $400,000.The net loss for the current year was $30,000.If the company paid a dividend of $1 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

________________________ is the number of shares that a corporation's charter allows it to sell.

The stockholders' equity section of a company's year-end balance sheet follows: The preferred stock has a call price of $103 per share plus dividends in arrears.One entire year's dividends are in arrears.Calculate the book value per (1) preferred share and (2) common share.

A company is authorized to issue 50,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock,and 500,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:

Dividend payment involves three important dates.They are ______________________,_________________________ and ____________________________.

On August 31,2013,Gilliam Corporation's common stock is priced at $50 per share before any stock dividend,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 10% stock dividend. -What is the total amount in the Retained Earning account immediately after the stock dividend?

A company paid a cash dividend of $0.44 per share during the current year and reported 18,000 shares of common stock issued and 2,000 common shares in treasury stock during the current year.The year-end market price per share was $27.50.Calculate the following: (1) total amount of cash dividends paid to common shareholders and (2) dividend yield.

On May 1,a company's board of directors declared a 10% stock dividend to be distributed on June 1 to the stockholders of record on May 21.The company had 250,000 shares of $10 par value common stock outstanding with a market value of $22 per share.Prepare the journal entries required on May 1,May 21,and June 1.

The total amount of stock that a corporation's charter allows it to issue is referred to as: