The equity section of Cyril Coiporation’s balance sheet shows the following:

Determine the book value per share of the preferred and common stock under two separate situations.

1. No prefeiTed dividends are in arrears.
2. Three years of prefen'ed dividends are in arrears.

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Preferred stock-6% cumulative, $25 par value, $30 call price. 10,000 shares issued and outstanding Common stock-$10 par value, 80,000 shares issued and outstanding. Retained earnings Total stockholders' equity $ 250,000 800,000 535,000 $1,585,000