会计学企业决策的基础 课后习题 答案 chapter11

chapter11 chapter11 E11.5 a.Sharesofpreferredcapital=capitalstockofpreferredcapital/parvalue=15,000,000/100=150,000 b.Annualdividends=15,000,000*7%=1,050,000 c.Averageissuancepricepershareofcommonstock=(44,000,000+20,000,000)/4,000,000=16 d.Legalcapital=15,000,000+20,000,000=35,000,000 Totalpaid-incapital=15,000,000+20,000,000+44,000,000=79,000,000 e.Bookvaluepershareofcommonstock=(totalstockholders'equity-preferredstock)/sharesofcommonstock=(143,450.000-15,000,000)/4,000,000≈32.11 f.Itimpossibleforustousetheinformationabovetodeterminethemarketvalue.Wecanonlygettheparvalueandthebookvalueofthestocksfromthebalancesheet.Parvalueonlyrepresentsthelegalcapitalpershare-theamountbelowwhichcannotbereduced,exceptbylossesfrombusinessoperations.Althoughthebookvalueisusedinevaluatingthereasonablenessofthemarketpriceofastock,themarketvalueisalsoaffectedbythedividendrate,therisk-theinvestorshavetotaketogainaprofit,theinterestrateandoverexpectationastothefutureprofitabilityofthebusinessandtheriskthatthislevelofprofitabilitymaynotbeachieved. E.11.14 a.Stockholders'equity Commonstock,$10parvalue,authorized200,000shares, issued100,000shares(ofwhich15,000areholdintreasury)，85000outstandingshares 1,000,000 Additionalpaid-incapital: Commonstock 800,000 Treasurystock 30,000 Totalpaid-incapital 1,830,000 Retainedearning 120,000 Subtotal 1,950,000 Less:Treasurystock(15,000sharesofcommon,at$20cost) 300,000 Totalstockholders'equity 1,650,000 b.Asthedeclarationandthedistributionofa2-for-1stocksplit,theamountofsharesofcommonstockwouldincreasefrom100,000to200,000;theamountossharesoftreasurystockwouldincreasefrom15,000to30,000.Andtheparvalueofthecommonstockwouldreducedfrom$10to$5;thepriceofthecommonwouldreducedfrom$18to$9;thepriceofthetreasurystockwouldshiftfrom.$20to$10. P11.7A a.Parvaluerepresentsthelegalcapitalpershare-theamountbelowwhichcannotbereduced,exceptbylossesfrombusinessoperations(orbyspeciallegalactions).Parvalue,therefore,mayberegardedasaminimumcushionofequitycapitalexistingfortheprotectionofcreditors. Bookvaluepershareistheamountofnetassetsrepresentedbyeachshareofstock,whichisthehistoricalvalueofthestock.Itisusedinevaluatingthereasonablenessofthemarketpriceofastock.Ifastockissellingatapriceabovebookvalue,itisthesignofasuccessfulcorporation.Ifnot,investorsbelievethatthecompany'sresourcesareworthlessthantheircostunderthecontrolofcurrentmanagement. Thepriceatwhichtheseshareschangehandsrepresentsthemarketvalueofthestock,whichrepresentstheinventors'futureexpectationofthecompany'soperation.Itisaffectedbythedividendrate,therisk-theinvestorshavetotaketogainaprofit,theinterestrateandoverexpectationastothefutureprofitabilityofthebusinessandtheriskthatthislevelofprofitabilitymaynotbeachieved. b.Thecompany'sparvalue-onetenthofacentpershare-isquitlow.Howeverthecorporationcansetparvalueatanylevel;theamountofparvaluehasnodirecteffectuponeitherbookvalueormarketvalue.Itdoesmean,however,thattheamountofthecompany'slegalecapital-servingasacushionforcreditors-isquitelow.Anotherreasonforthesmallparvalueisthepossibilityofstocksplitsinthepast. Thefactthatbookvaluepershareisfaraboveparvalueindicatedeitherthatthestockinitiallywasissuedatapricefaraboveparvalue,orthatthecompanyhasretainedsubstantialamountofearnings.Eveniftherehadbeenstocksplitsinprioryears,thetotaldollaramountofbookvaluewouldnothavebeenaffected. Themarketvalueistentimesbookvalue.Thisimpliesthatinvestorsbelievethatmanagementandproductlinesmakethecompanyworthfarmorethantheamountsofcapitalhistoricalinvested. heverylowparvalueofferslittleprotectiontothecompany'screditors.Ontheotherhand,amarketvalueofmanytimesbookvalueimpliesthatlittlecushionisrequiredforcreditors'claimstobesecure.Ifthecompanyperformsasitsmarketvalueimpliesthatitwill,itsearningsandcashflowsshouldmakethecreditors'positionsquitesecure.Earningsandcashflowsarefarmorerelevanttoacompany'sdebt-payingabilitythanisthecushionprovidedbyparvalue. P11.8A a.Stockholders'equity Commonstock,$1parvalue,authorized andissued50,000shares, 50,000 Additionalpaid-incapital: Commonstock 350,000 Treasurystock 5,000 Totalpaid-incapital 405,000 Retainedearning 185,000 Totalstockholders'equity 590,000 FellerCorporation StatementofRetainedEarnings Dec.31,2009 RetainedEarnings,Jan,1,2009 107,000 Add:NetincomeearnedinDec,2009 78,000 subtotal 185,000 Less:DividendsdeclareinDec,2009 0 RetainedEarnings,Dec,31,2009 185,000 b.Bookvaluepervalue=590000/50000=11.8 c.Thepurchaseof$35,000treasurystock,in2008,willcauseacashoutflowwhichisrecordedintheitemofCFF. Thereissuanceof$40,000treasurystock,in2009,willcauseacashinflowwhichisrecordedintheitemofCFF.