What are the retained earnings of dawn technologies

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Reference no: EM131442741

Q1. Equity Accounts - Following are the equity accounts for Dawn Technologies:

Ordinary shares, £0.12 par value - 120,000

Additional paid-in capital - 4,526,123

Retained earnings - ?

Total - 6,421,830

(a) What are the retained earnings of Dawn Technologies?

(b) How many shares are outstanding?

(c) At what average price were the shares sold?

(d) What is the book value per share?

Q2. Equity Accounts - The equity accounts for Demringen Skya for are as follows:

Ordinary shares, NKr2 par value 290,000 shares outstanding -  ?

Additional paid-in capital - 1,150,000

Retained earnings - 750,000

Total - ?

(a) What are the ordinary share and total equity values for the equity account?

(b) The company has decided to issue 50,000 shares of equity at a price of NKr20 per share. Show the effects of the new issue on the equity accounts.

Q3. Equity Accounts - Ulrich plc's articles of incorporation authorize the firm to issue 500,000 shares of £5 par value ordinary equity, of which 410,000 shares have been issued.

Those shares were sold at an average of 30 per cent over par. In the quarter that ended last week, net income was £650,000; 30 per cent of that income was paid as a dividend. The previous balance sheet showed a retained earnings balance of £3,545,000.

(a) Create the equity statement for the company.

(b) Suppose the company sells 25,000 of the authorized but unissued shares at the price of £4 per share. What will the new equity statement look like?

Q4. Corporate Voting - The shareholders of Unicorn plc need to elect seven new directors. There are 500,000 shares outstanding currently trading at £34 per share. You would like to serve on the board of directors; unfortunately no one else will be voting for you. How much will it cost you to be certain that you can be elected if the company uses straight voting? How much will it cost you if the company uses cumulative voting?

Reference no: EM131442741

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