computation of book value of preferred stock and


Computation of book value of preferred stock and common stock.

The stockholders' equity section of a corporation's balance sheet follows:
Preferred stock, $25 par value, 5%, cumulative, 10,000 shares

Authorized, 5,000 shares issued and outstanding   $125,000
Contributed capital in excess of par value, Preferred stock 50,000
Common stock, $10 par value, 50,000 shares authorized, 10,000 shares issued and outstanding 100,000
Contributed capital in excess of par value, Common stock 40,000

Retained earnings 95.000
Total stockholders' equity $410,000

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

Book value per preferred share $
Book value per common share  $

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Financial Accounting: computation of book value of preferred stock and
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