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