the external audit provides validity to the procedures that the company has in place internally, which supports the data gathering process in general (not just as it relates to the financial statements).
5. SuperValu, Inc. had an average of 130,090,000 diluted shares of common stock outstanding (SuperValu, 2000, p. 34). Diluted shares take into account those shares which are outstanding through conversion features of preferred stock and bonds that have not yet been exercised (and which may never be exercised).
6. The company has authorized one million shares of preferred stock with no par value; approximately 6,000 shares at a stated value of $1,000 per share were outstanding in FY 1999. The company repurchased its outstanding preferred stock in FY 2000 with the result that no preferred stock is currently outstanding (SuperValu, 2000, p. 21).
7. The company declared dividends of $68,952,000 for fiscal year 2000 (SuperValu, 2000, p. 22). This represents a dividend of 0.5375 cents per share of common stock (SuperValu, 2000, p. 22).
8. A company's book value is equal to:
SuperValu's equity is given as $1,821,479,000 with 130,090,000 diluted shares (SuperValu, 2000, p. 34). This yields a book value of $14.00 per share.
9a. The company does not have preferred stockholders since it repurchased its outstanding preferred stock during FY 2000 (SuperValu, 2000, p. 22).
9b. Paid-in capital is funds a corporation receives in excess of the par value of stock when it sells stock. Paid-in capital can also be increased when a company declares a stock dividend. SuperValu has a paid-in capital value of $132,226,000 (noted as "capital in excess of par value" on its balance sheet) (SuperValu, 2000, p. 21).
10. The average price per share received by the company for all common stock can be calculated by taken the company's value of common stock and paid-in capital ($282,896,000) (SuperValu, 2000, p. 21) and dividing by the num...