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# Book Value of common stock and preferred: Cleveland Company

Cleveland Company reports the following information as of 12/31/2012:

-10% cumulative preferred stock, par value
\$100, One-year of dividends in arrears; 20,000
shares authorized; issued, 10,000 shares;
\$1,000,000

-Common stock - authorized 500,000; 40,000
outstanding; \$2 par value - \$80,000

-Retained Earnings - \$2,000,000

21. The book value per share of common stock is:
A) \$57.75
B) \$60.25
C) \$60.75
D) \$63.25

22. The book value per share of preferred stock is:
A) \$ 100
B) \$ 110
C) \$ 112
D) \$ 116

#### Solution Preview

Thank you and good luck in your studies and beyond!

Cleveland Company reports the following information as of 12/31/2012:

-10% cumulative preferred stock, par value
\$100, One-year of dividends in arrears; 20,000
shares authorized; issued, 10,000 shares;
\$1,000,000 ...

#### Solution Summary

This classic problem illustrates how to find the book value of common and preferred stock.

\$2.19