The year-end balance sheet of Jackson Products, Inc., includes the following stockholders’ equity section (with certain details omitted):Stockholders’ equity:Capital stock:7% cumulative preferred stock, $100 par value . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000Common stock, $5 par value, 5,000,000 sharesauthorized, 4,000,000 shares issued and outstanding . . . . . . . . . . . . . . . 20,000,000Additional paid-in capital:Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,000,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,450,000Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $143,450,000From this information, compute answers to the following questions:a. How many shares of preferred stock have been issued?b. What is the total amount of the annual dividends to which preferred stockholders are entitled?c. What was the average issuance price per share of common stock?d. What is the amount of legal capital and the amount of total paid-in capital?e. What is the book value per share of common stock?f. Is it possible to determine the fair market value per share of common stock from the stock-holders’ equity section above? Explain.View Solution:
The year end balance sheet of Jackson Products Inc includes the



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