MGMT E-2600
Homework #8
Due: November 10, 2015 by 11:59pm EST
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Topic: Common Stock Dividend
1. Gandevani Inc. has 35,000 common shares issued at a $1.50 par value of which 22,000 are
outstanding. If Savannah has no other outstanding stock, what size dividend must be paid such that
each share receives $2?
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Topic: Common Stock Dividend With Cumulative Preferred
2. As of 2014, Kelly Corp. has $10 par, 4% preferred stock, 6,000 shares outstanding, and $1 par
common stock with 38,000 shares outstanding. The preferred stock is cumulative and preferred
stockholders last received a dividend in 2011. If the company wants to distribute $3 per share to the
common stockholders in 2014, what is the total amount of dividends that the company must pay in
the current year?
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Topic: Computing Contributed Capital Amounts
3. Following is the stockholders’ equity section of a recent balance sheet for Raju, Inc. (all values in
thousands except share data):
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Stockholders’ Equity:
Preferred stock, $.01 par value, authorized shares – 100,000,000,
issued shares – none
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Common stock, $1 par value, authorized shares, – 400,000,000, issued
shares – 241,763,357
$
241,763
Capital in excess of par
Retained earnings
(2,645,500)
Total stockholders’ equity
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(100,304)
Common stock in treasury, at cost – 72,227,834 shares
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b.
c.
d.
5,840,053
Accumulated other comprehensive loss
