【正文】 1 ,0 0 0 s h a r e s a u th o r i z e d 。 E q u i t y w i t h C o m m o n S t o c kS t oc k ho l de r s 39。 3 0 ,0 0 0 s h a r e s i s s u e d a n d o u ts ta n d i n g 3 0 0 , 0 0 0$ P r e f e r r e d S to c k $ 1 0 0 p a r v a l u e 。 1 , 0 0 0 s ha r e s a ut hor i z e d, i s s ue d a nd out s t a ndi ng 1 0 0 , 0 0 0 Tot a l c ont r i but e d c a pi t a l 3 0 0 , 0 0 0$ Example: Consider the following partial Statement of Stockholders?Equity. During 1999, the directors declare cash dividends of $5,000. In year 2023, the directors declare cash dividends of $42,000. ?The McGrawHill Companies, Inc., 1999 Slide 1125 Irwin/McGrawHill P r e f e r r e d C om m onI f P r e f e r r e d S t oc k i s N on c um ul a t i v e :Y e a r 1 9 9 9 $ 5 , 0 0 0 d i v i d e n d s d e c l a r e d 5 , 0 0 0$ $ Y e a r 2 0 0 0 S t e p 1 : C u r r e n t p r e f e r r e d d i v i d e n d 9 , 0 0 0$ S t e p 2 : R e m a i n d e r t o c o m m o n s h a r e h o l d e r s 3 3 , 0 0 0$ I f P r e f e r r e d S t oc k i s C um ul a t i v e :Y e a r 1 9 9 9 $ 5 , 0 0 0 d i v i d e n d s d e c l a r e d 5 , 0 0 0$ $ Y e a r 2 0 0 0 S t e p 1 : D i v i d e n d s i n a r r e a r s 4 , 0 0 0$ S t e p 2 : C u r r e n t p r e f e r r e d d i v i d e n d 9 , 0 0 0 S t e p 3 : R e m a i n d e r t o c o m m o n s h a r e h o l d e r s 2 9 , 0 0 0$ T o t a l s 1 3 , 0 0 0$ 2 9 , 0 0 0$ Stock Preferred as to Dividends ?The McGrawHill Companies, Inc., 1999 Slide 1126 Irwin/McGrawHill Convertible Preferred Stock I just converted 100 shares of preferred stock into 1,000 shares of mon stock and ended up with a higher dividend yield! Gee, I can’ nt do that with my preferred stock. Some preferred stock is convertible into shares of mon stock. ?The McGrawHill Companies, Inc., 1999 Slide 1127 Irwin/McGrawHill Preferred Stock S t oc k ho l de r s 39。 4 , 0 0 0 s ha r e s a ut hor i z e d, i s s ue d a nd out s t a ndi ng 2 0 0 , 0 0 0$ P r e f e r r e d s t oc k , 9 % , $ 1 0 0 pa r v a l ue 。 1 ,0 0 0 s h a r e s a u th o r i z e d 。 E qu i t y C o n t r i b u t e d c a p i t a l : C o m m o n S to c k $ 2 p a r v a l u e 。 3 0 ,0 0 0 s h a r e s i s s u e d a n d o u ts ta n d i n g 3 0 0 , 0 0 0$ P r e f e r r e d S to c k $ 1 0 0 p a r v a l u e 。 5 0 s h a r e s i s s u e d a n d o u ts ta n d i n g 5 , 0 0 0 C o n tr i b u te d C a p i ta l i n E x c e s s o f P a r 1 , 0 0 0 R e t a i n e d e a r n i n g s 6 5 , 0 0 0 T o ta l s to c k h o l d e r s 39。 e q u i t y i si n c r e a s e d i n t w o w a y s .?The McGrawHill Companies, Inc., 1999 Slide 1116 Irwin/McGrawHill Par value is an arbitrary amount assigned to each share of stock when it is authorized. Market price is the amount that each share of stock will sell for in the market. Stockholders?Equity ?The McGrawHill Companies, Inc., 1999 Slide 1117 Irwin/McGrawHill Common stock ca