The balance sheet of Elsimate, Inc., reported the following:

Notes to the financial statements indicate that 8,000 shares of \(\$ 2.60\) preferred stock with a stated value of \(\$ 40\) per share were issued and outstanding. Preferred dividends are in arrears for three years, including the current year. The additional paid-in capital was contributed by the common stockholders. On the balance sheet date, the market value of the Elsimate common stock was \(\$ 7.50\) per share.
\section*{Required}
1. Is the preferred stock cumulative or noncumulative, participating or nonparticipating? How can you tell?
2. What is the amount of the annual preferred dividend?
3. Which class of stockholders controls the company? Give your reason.
4. What is the total paid-in capital of the company?
5. What was the total market value of the common stock?
6. Compute the book value per share of the preferred stock and the common stock.

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Stockholders' Investment (same as stockholders' equity] Redeemable nonvoting preferred stock, no-par (Redemption value, $358,000). Common stock, $1.50 par value, authorized 75,000 shares; issued 36,000 shares. [Additional] paid-in capital. Retained earnings........ Total stockholders' investment. $320,000 54,000 231,000 119,000 $724,000