Problem: Book Value per Share of Common Stock
Shown below is information relating to the stockholders' equity of Earthling, Inc.
6% cumulative preferred stock, $100 par $ 600,000
Common stock, $10 par, 1,000,000 shares authorized $2,000,000
Additional paid-in capital common stock $3,000,000
Additional paid-in capital preferred stock $0
Retained Earnings $1,000,000
Assume one year of dividends in arrears on preferred stock
From the above information, please compute the following (please show your work):
1. The dollar amount of the preferred dividends in arrears (from above)
2. The number of shares of preferred stock outstanding
3. The number of shares of common stock outstanding
4. Average issue price per share of common stock
5. Total paid-in capital
6. Total stockholders' equity
7. Book value per share of common stock