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Razz Corp book values of stock issues

See attached file for tables.

Problem 11-4A
Analysis of changes in stockholders' equity accounts. The equity sections from Salazar Group's 2011 and 2012 year-end balance sheets follow.

The following transactions and events affected its equity during year 2012.

Required
1. How many common shares are outstanding on each cash dividend date?
2. What is the total dollar amount for each of the four cash dividends?
3. What is the amount of the capitalization of retained earnings for the stock dividend?
4. What is the per share cost of the treasury stock purchased?
5. How much net income did the company earn during year 2012?

Check
(3) $44,400
(4) $10
(5) $124,000

Problem 11-5A
Computation of book values and dividend allocations. Razz Corporation's common stock is currently selling on a stock exchange at $170 per share, and its current balance sheet shows the following stockholders' equity section.

Required (Round per share amounts to cents.)

1. What is the current market value (price) of this corporation's common stock?

2. What are the par values of the corporation's preferred stock and its common stock?

3. If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock?

4. If two years' preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock?

5. If two years' preferred dividends are in arrears and the preferred stock is callable at $110 per share, what are the book values per share of the preferred stock and the common stock?

6. If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $20,000, what total amount will be paid to the preferred and to the common shareholders? What is the amount of dividends per share for the common stock?
Analysis Component

7. What are some factors that can contribute to a difference between the book value of common stock and its market value (price)?
Check
(4) Book value of common, $112.50
(5) Book value of common, $110
(6) Dividends per common share, $1.25

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