Question

Initial sale price of common stock ​ Hudson-Perry Recordings Inc has one issue of preferred stock and one issue of common stock outstanding. Given their​ stockholders' equity account that​ follows, determine the original price per share at which the firm sold its single issue of common stock. ​Stockholders' Equity​ ($000) Preferred stock $ 228 Common stock ​($ 0.24 ​par, 1 comma 402 comma 000 shares​ outstanding) 336 ​Paid-in capital in excess of par on common stock 19 comma 466 Retained earnings 1 comma 803 Total​ stockholders' equity Modifying $ 21 comma 833 with double underline The original price per share is ​$ nothing. ​(Round to the nearest​ cent.)

Answer 1

the original price from the issue of shares: 14.12 dollars

Step-by-step explanation:

It will be the sum of the common stock and the paid-in capital in excess of par:

The values are expresses as thousand, so we multiply by 1,000

common stock 0.24 x 1,402,000 = 336,480

additional paid-in 19,466 x 1,000 = 19,466,000

Total 19,802,480

Price per share: 19,802,480 / 1,402,000 = 14,12410 = $14.12 This will be the original price of the price.