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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

Additional paid-in-capital - $450,000
-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