The stockholders’ equity section of Tootsie Roll Industries’ balance sheet is shown in the Consolidated Statement of Financial Position in Appendix A. You will also find data relative to this problem on other pages of Appendix A. (Note that Tootsie Roll
has two classes of common stock. To answer the following questions, add the two classes of stock together.)
Answer the following questions.
(a) What is the par or stated value per share of Tootsie Roll’s common stock?
(b) What percentage of Tootsie Roll’s authorized common stock was issued at December 31, 2007?
(c) How many shares of common stock were outstanding at December 31, 2006, and at December 31, 2007?
(d) Calculate the payout ratio, earnings per share, and return on common stockholders’ equity ratio for 2007.