Question

Power drive corporation designs and produces a line of golf equipment and golf apparel. power drive has 100,000 shares of common stock outstanding as of the beginning of 2024. power drive has the following transactions affecting stockholders' equity in 2024. march 1 issues 62,000 additional shares of $1 par value common stock for $59 per share. may 10 purchases 5,700 shares of treasury stock for $62 per share. june 1 declares a cash dividend of $1.85 per share to all stockholders of record on june 15. (hint: dividends are not paid on treasury stock.) july 1 pays the cash dividend declared on june 1. october 21 resells 2,850 shares of treasury stock purchased on may 10 for $67 per share. power drive corporation has the following beginning balances in its stockholders' equity accounts on january 1, 2024: common stock, $100,000; additional paid-in capital, $5,200,000; and retained earnings, $2,700,000. net income for the year ended december 31, 2024, is $670,000.

A) $190,950
B) $191,250
C) $191,550
D) $191,850

Answer 1

The price per share of Power Drive Corporation's stock is $191,550.

Step-by-step explanation:

In this question, the student is given a series of transactions that affect the stockholders' equity of Power Drive Corporation. The student is asked to determine the price per share of the stock based on the given information. To calculate the price per share, we need to consider the additional shares issued, treasury stock purchased and resold, and the cash dividend declared and paid. By performing the necessary calculations, we can determine that the price per share is $191,550.