Book value per preferred & common share

The stockholders' equity section of a corporation's balance sheet which is attached follows.

1. Assuming that the preferred stock is not callable and no dividends are in arrears, compute the book values per preferred share and per common share.

Book value per preferred share _________________
Book value per common share ___________________

2. Assuming that the preferred stock has a call price of \$30 per share and one year of cumulative preferred dividends is in arrears, compute the book values per preferred share and per common share.

Book value per preferred share _________________
Book value per common share __________________

This question has the following supporting file(s):

• Accounting 14 balance sheet.xlsx
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Solution Summary

The solution computes book value per preferred and common share in given scenario.

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• Accounting+14+balance+sheet(1).xlsx

Jitendra Lodha, MBA

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Active since 2005

BComm, Pune University, INdia
MBA, Cardiff University. UK

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Extracted Content from Question Files:

• Accounting 14 balance sheet.xlsx

Preferred stock, \$25 par value, 6%, cumulative, 10,000 shares
authorized, 5,000 shares issued and outstanding \$125,000
Paid-in capital in excess of par value, Preferred stock \$50,000
Coomon stock, \$10 par value, 50,000 shares authorized,
10,000 shares issued and outstanding \$100,000
Paid-in capital excess of par value , Common stock \$40,000
Retained Earnings \$95,000
Total stockholders' equity \$410,000