A Shoup Corporation Has 9,000 Shares of $10 Par Value

question 27

Essay

a. Shoup Corporation has 9,000 shares of $10 par value common stock and 5,000 shares of $50 par value, 10 percent cumulative preferred stock outstanding. All shares were issued at par value. In addition, retained earnings total $90,000. If the preferred stock is callable at $54 per share, and one year's dividends are in arrears, compute book value per share of preferred stock.
b. Assume the same facts as in a above. Calculate book value per share of common stock.
c. Assume the same facts as in a above and that Shoup Corporation declares a 5-for-1 stock split on its common stock. After the split, total par value of common stock equals what amount?
d. Assume the same facts as in a above and that Shoup Corporation declares a 12 percent stock dividend on its preferred stock. If the market value on the declaration date was $70 per share, for what amount will Preferred Stock Distributable be credited?

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Definitions:

Biflagellate

Having two flagella, which are long, slender projections that provide locomotion to various cells and single-celled organisms.

Nanoplankton

Extremely minute (<10 μm in length) algae that are major producers in the ocean because of their great abundance; part of phytoplankton.

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments, known for their role in red tides and bioluminescence.

Symbiotic

A close and often long-term interaction between two different biological species, which may be beneficial, harmful, or neutral to the parties involved.