posted by Kathy .
Jones Company is authorized to issue 20,000 shares of no-par, $5 stated-value common stock and 5,000 shares of 9%, 100 par preferred stock. It enters into the following transaction:
1. Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30% down payment
2. Collects the remaining balance of the subscription contract and issues the common stock
3. Acquires a building by paying $23,00 cash and issuing 2,,000 shares of common stock and 600 shares of preferred stock. Common stock is currently selling at $46 per share; preffed stock has no current market value. The building is appraised at $180,000
4. Sells 1,000 shares of common stock at $45 per share
5. Sells 900 shares of preferred stock at $112 per share
6. Declares a two-for-one stock split on the common stock, reducing the stated value to $2.50 per share
Raphael Corporation’s common stock is currently selling on a stock exchange at $85 per share, and its current balance sheet shows the following stockholders’ equity section:
Preferred stock—5% cumulative, $___ par value, 1,000 shares
authorized, issued, and outstanding $ 50,000
Common stock—$___ par value, 4,000 shares authorized, issued,
and outstanding 80,000
Retained earnings 150,000
Total stockholders' equity $ 280,000
1. What is the current market value (price) of this corporation’s common stock?