Frederick Corporation's common stock is selling on a stock exchange today at \(\$ 28.75\) per share, and a just-published balance sheet shows the stockholders' equity of the corporation as follows:

\section*{Required}
Answer these questions: (1) What is the market value of the corporation's common stock? (2) What are the par values of its

(a) preferred stock and

(b) common stock? (3) If there are no dividends in arrears, what are the book values of the

(a) preferred stock and

(b) common stock? (4) If two years' dividends are in arrears on the preferred stock, what are the book values of the

(a) preferred stock and

(b) common stock? (Assume the preferred stock is not callable.)

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Stockholders' Equity Preferred stock, 8.5% cumulative and nonparticipating, $100 par value, 4,000 shares authorized and outstanding Common stock, $100 par value, 10,000 shares authorized and outstanding Retained earnings. Total stockholders' equity $ 400,000 1,000,000 476,000 $1,876,000