The equity section of Anna Corporation’s balance sheet shows the following:

Determine the book value per share of the preferred and common stock under two separate situations:
1. No preferred dividends are in arrears, 2. Three years of preferred dividends are in arrears.

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Preferred stock-6% cumulative, $25 par value, $30 call price, 5,000 shares issued and outstanding. $125,000 Common stock-$10 par value, 40,000 shares issued and outstanding 400,000 Retained earnings Total stockholders' equity 267,500 $792,500