会计学企业决策的基础课后习题答案chapter11

P118ABOOKVALUEPERSHAREISTHEAMOUNTOFNETASSETSREPRESENTEDBYEACHSHAREOFSTOCK,WHICHISTHEHISTORICALTHEPRICEATWHICHTHESESHARESCHANGEHANDSREPRESENTSTHEMARKETVALUEOFTHESTOCK,WHICHREPRESENTSTHEBTHECOMPANYSPARVALUEONETENTHOFACENTPERSHAREISQUITLOWHOWEVERTHECORPORATIONCANSETPARVALUETHEFACTTHATBOOKVALUEPERSHAREISFARABOVEPARVALUEINDICATEDEITHERTHATTHESTOCKINITIALLYWASISSUEDTHEMARKETVALUEISTENTIMESBOOKVALUETHISIMPLIESTHATINVESTORSBELIEVETHATMANAGEMENTANDPRODUCTLINESHEVERYLOWPARVALUEOFFERSLITTLEPROTECTIONTOTHECOMPANYSCREDITORSONTHEOTHERHAND,AMARKETVALUEOFSUBTOTALLESSTREASURYSTOCK15,000SHARESOFCOMMON,AT20COSTTOTALSTOCKHOLDERSEQUITYBASTHEDECLARATIONANDTHEDISTRIBUTIONOFA2FOR1STOCKSPLIT,THEAMOUNTOFSHARESOFCOMMONSTOCKWOULDP117AAPARVALUEREPRESENTSTHELEGALCAPITALPERSHARETHEAMOUNTBELOWWHICHCANNOTBEREDUCED,EXCEPTBYLOSSESISSUED100,000SHARESOFWHICH15,000AREHOLDINTREASURY，85000OUTSTANDINGSHARESADDITIONALPAIDINCAPITALCOMMONSTOCKTREASURYSTOCKTOTALPAIDINCAPITALRETAINEDEARNINGTOTALPAIDINCAPITAL15,000,00020,000,00044,000,00079,000,000EBOOKVALUEPERSHAREOFCOMMONSTOCKTOTALSTOCKHOLDERSEQUITYPREFERREDSTOCK/SHARESOFCOMMONSTOCK143,45000015,000,000/4,000,0003211FITIMPOSSIBLEFORUSTOUSETHEINFORMATIONABOVETODETERMINETHEMARKETVALUEWECANONLYGETTHEPARVALUEANDTHEBOOKVALUEOFTHESTOCKSFROMTHEBALANCESHEETPARVALUEONLYREPRESENTSTHELEGALCAPITALPERSHARETHEAMOUNTBELOWWHICHCANNOTBEREDUCED,EXCEPTBYLOSSESFROMBUSINESSOPERATIONSALTHOUGHTHEBOOKVALUEISUSEDINEVALUATINGTHEREASONABLENESSOFTHEMARKETPRICEOFASTOCK,THEMARKETVALUEISALSOAFFECTEDBYTHEDIVIDENDRATE,THERISKTHEINVESTORSHAVETOTAKETOGAINAPROFIT,THEINTERESTRATEANDOVEREXPECTATIONASTOTHEFUTUREPROFITABILITYOFTHEBUSINESSANDTHERISKTHATTHISLEVELOFPROFITABILITYMAYNOTBEACHIEVEDE1114ASTOCKHOLDERSEQUITYCOMMONSTOCK,10PARVALUE,AUTHORIZED200,000SHARES,CHAPTER11E115ASHARESOFPREFERREDCAPITALCAPITALSTOCKOFPREFERREDCAPITAL/PARVALUE15,000,000/100150,000BANNUALDIVIDENDS15,000,00071,050,000CAVERAGEISSUANCEPRICEPERSHAREOFCOMMONSTOCK44,000,00020,000,000/4,000,00016DLEGALCAPITAL15,000,00020,000,00035,000,000THEREISSUANCEOF40,000TREASURYSTOCK,IN2009,WILLCAUSEACASHINFLOWWHICHISRECORDEDINTHEITEMOFCFFLESSDIVIDENDSDECLAREINDEC,2009RETAINEDEARNINGS,DEC,31,2009BBOOKVALUEPERVALUE590000/50000118CTHEPURCHASEOF35,000TREASURYSTOCK,IN2008,WILLCAUSEACASHOUTFLOWWHICHISRECORDEDINTHEITEMOFCFFDEC31,2009RETAINEDEARNINGS,JAN,1,2009ADDNETINCOMEEARNEDINDEC,2009SUBTOTALSTATEMENTOFRETAINEDEARNINGSTREASURYSTOCKTOTALPAIDINCAPITALRETAINEDEARNINGTOTALSTOCKHOLDERSEQUITYFELLERCORPORATIONASTOCKHOLDERSEQUITYCOMMONSTOCK,1PARVALUE,AUTHORIZEDANDISSUED50,000SHARES,ADDITIONALPAIDINCAPITALCOMMONSTOCK1,000,000800,00030,0001,830,000120,0001,950,000300,0001,650,000P118ABOOKVALUEPERSHAREISTHEAMOUNTOFNETASSETSREPRESENTEDBYEACHSHAREOFSTOCK,WHICHISTHEHISTORICALTHEPRICEATWHICHTHESESHARESCHANGEHANDSREPRESENTSTHEMARKETVALUEOFTHESTOCK,WHICHREPRESENTSTHEBTHECOMPANYSPARVALUEONETENTHOFACENTPERSHAREISQUITLOWHOWEVERTHECORPORATIONCANSETPARVALUETHEFACTTHATBOOKVALUEPERSHAREISFARABOVEPARVALUEINDICATEDEITHERTHATTHESTOCKINITIALLYWASISSUEDTHEMARKETVALUEISTENTIMESBOOKVALUETHISIMPLIESTHATINVESTORSBELIEVETHATMANAGEMENTANDPRODUCTLINESHEVERYLOWPARVALUEOFFERSLITTLEPROTECTIONTOTHECOMPANYSCREDITORSONTHEOTHERHAND,AMARKETVALUEOFSUBTOTALLESSTREASURYSTOCK15,000SHARESOFCOMMON,AT20COSTTOTALSTOCKHOLDERSEQUITYBASTHEDECLARATIONANDTHEDISTRIBUTIONOFA2FOR1STOCKSPLIT,THEAMOUNTOFSHARESOFCOMMONSTOCKWOULDP117AAPARVALUEREPRESENTSTHELEGALCAPITALPERSHARETHEAMOUNTBELOWWHICHCANNOTBEREDUCED,EXCEPTBYLOSSESISSUED100,000SHARESOFWHICH15,000AREHOLDINTREASURY，85000OUTSTANDINGSHARESADDITIONALPAIDINCAPITALCOMMONSTOCKTREASURYSTOCKTOTALPAIDINCAPITALRETAINEDEARNINGTOTALPAIDINCAPITAL15,000,00020,000,00044,000,00079,000,000EBOOKVALUEPERSHAREOFCOMMONSTOCKTOTALSTOCKHOLDERSEQUITYPREFERREDSTOCK/SHARESOFCOMMONSTOCK143,45000015,000,000/4,000,0003211FITIMPOSSIBLEFORUSTOUSETHEINFORMATIONABOVETODETERMINETHEMARKETVALUEWECANONLYGETTHEPARVALUEANDTHEBOOKVALUEOFTHESTOCKSFROMTHEBALANCESHEETPARVALUEONLYREPRESENTSTHELEGALCAPITALPERSHARETHEAMOUNTBELOWWHICHCANNOTBEREDUCED,EXCEPTBYLOSSESFROMBUSINESSOPERATIONSALTHOUGHTHEBOOKVALUEISUSEDINEVALUATINGTHEREASONABLENESSOFTHEMARKETPRICEOFASTOCK,THEMARKETVALUEISALSOAFFECTEDBYTHEDIVIDENDRATE,THERISKTHEINVESTORSHAVETOTAKETOGAINAPROFIT,THEINTERESTRATEANDOVEREXPECTATIONASTOTHEFUTUREPROFITABILITYOFTHEBUSINESSANDTHERISKTHATTHISLEVELOFPROFITABILITYMAYNOTBEACHIEVEDE1114ASTOCKHOLDERSEQUITYCOMMONSTOCK,10PARVALUE,AUTHORIZED200,000SHARES,CHAPTER11E115ASHARESOFPREFERREDCAPITALCAPITALSTOCKOFPREFERREDCAPITAL/PARVALUE15,000,000/100150,000BANNUALDIVIDENDS15,000,00071,050,000CAVERAGEISSUANCEPRICEPERSHAREOFCOMMONSTOCK44,000,00020,000,000/4,000,00016DLEGALCAPITAL15,000,00020,000,00035,000,00050,000350,0005,000405,000185,000590,000THEREISSUANCEOF40,000TREASURYSTOCK,IN2009,WILLCAUSEACASHINFLOWWHICHISRECORDEDINTHEITEMOFCFFLESSDIVIDENDSDECLAREINDEC,20090RETAINEDEARNINGS,DEC,31,2009185,000BBOOKVALUEPERVALUE590000/50000118CTHEPURCHASEOF35,000TREASURYSTOCK,IN2008,WILLCAUSEACASHOUTFLOWWHICHISRECORDEDINTHEITEMOFCFFDEC31,2009RETAINEDEARNINGS,JAN,1,2009107,000ADDNET