罗斯《公司理财》英文习题答案chap014.doc

Chapter 14: Long-Term Financing: An Introduction 14.1 a. b. Net capital from the sale of shares Common Stock + Capital Surplus Net capital $135,430 + $203,145 $338,575 Therefore, the average price is $338,575 / 67,715 $5 per share Alternate solution: Average price Par value + Average capital surplus $2 + $203,145 / 67,715 $5 per share c. Book value Assets - Liabilities Equity Common stock + Capital surplus + Retained earnings $2,708,600 Therefore, book value per share is $2,708,600 / 67,715 $40. 14.2 a. Common stock Shares outstanding x Par value 500 x $1 $500 Total $150,500 b. Common stock 1500 shares outstanding, $1 par $1,500 Capital surplus* 79,000 Retained earnings 100,000 Total $180,500 * Capital Surplus Old surplus + Surplus on sale $50,000 + $30 - $1 x 1,000 $79,000 14.3 a. Shareholders’ equity Common stock $5 par value; authorized 500,000 shares; issued and outstanding 325,000 shares $1,625,000 Capital in excess of par* 195,000 Retained earnings** 3,794,600 Total $5,614,600 *Capital surplus 12% of Common Stock 0.12 $1,625,000 $195,000 **Retained earnings Old retained earnings + Net income - Dividends $3,545,000 + $260,000 - $260,000 0.04 3,794,600 b. Shareholders’ equity Common stock $5 par value; authorized 500,000 shares; issued and outstanding 350,000 shares $1,750,000 Capital in excess of par* 170,000 Retained earnings 3,794,600 Total $5,714,600 *Capital surplus is reduced by the below par sale, i.e. $195,000 - $1 25,000 $170,000 14.4 a. Under straight voting, one share equals one vote. Thus, to ensure the election of one director you must hold a majority of the shares. Since two million shares are outstanding, you must hold more than 1,000,000 shares to have a majority of votes. b. Cumulative voting is often more easily understood through a story. Remember that your goal is to elect one board member of the seven who will be chosen today. Suppose the firm has 28