The equity section of Westchester Corporation's balance sheet shows the following.
Preferred stock—6% cumulative, $25 par value, $30 call price, 10,000 shares issued and outstanding $250,000 Common stock—$10 par value, 80,000 shares issued and outstanding 800,000
Retained earnings …$35,000
Total stockholders' equity….. $1,585,000
Determine the book value per share of perferred and common stock under the two separate situations.
1. No perferred dividends are in arrears.
2. Three years of preferred dividends are in arrears.