罗斯《公司理财英文习题答案DOCchap014.docVIP

Chapter 14: Long-Term Financing: An Introduction 14.1 a. b. Net capital from the sale of shares = Common Stock + Capital Surplus Net capital = $135,430 + $203,145 = $338,575 Therefore, the average price is $338,575 / 67,715 = $5 per share Alternate solution: Average price = Par value + Average capital surplus = $2 + $203,145 / 67,715 = $5 per share c. Book value = Assets - Liabilities = Equity = Common stock + Capital surplus + Retained earnings = $2,708,600 Therefore, book value per share is $2,708,600 / 67,715= $40. 14.2 a. Common stock = (Shares outstanding ) x (Par value) = 500 x $1 = $500 Total = $150,500 b. Common stock (1500 shares outstanding, $1 par) $1,500 Capital surplus* 79,000 Retained earnings 100,000 Total $180,500 * Capital Surplus = Old surplus + Surplus on sale = $50,000 + ($30 - $1) x 1,000 =$79,000 14.3 a. Shareholders’ equity Common stock ($5 par value; authorized 500,000 shares; issued and outstanding 325,000 shares) $1,625,000 Capital in excess of par* 195,000 Retained earnings** 3,794,600 Total $5,614,600 *Capital surplus = 12% of Common Stock = (0.12) ($1,625,000) = $195,000 **Retained earnings = Old retained earnings + Net income - Dividends = $3,545,000 + $260,000 - ($260,000)(0.04) = 3,794,600 b. Shareholders’ equity Common stock ($5 par value; authorized 500,000 shares; issued and outstanding 350,000 shares) $1,750,000 Capital in excess of par* 170,000 Retained earnings 3,794,600 Total $5,714,600 *Capital surplus is reduced by the below par sale, i.e. $195,000 - ($1)(25,000) = $170,000 14.4 a. Under straight voting, one share equals one vote. Thus, to ensure the election of one director you must hold a majority of the shares. Since two million shares are outstanding, you must hold more than 1,000,000 shares to have a majority of votes. b. Cumulative vo