The balance sheet of Oak Manufacturing, Inc., reported the following:

Notes to the financial statements indicate that 9,000 shares of \(\$ 1.60\) preferred stock with a stated value of \(\$ 5\) per share were issued and outstanding. The preferred stock has a redemption value of \(\$ 25\) per share, and preferred dividends are in arrears for two 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 Oak Manufacturing 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. What is the total paid-in capital of the company?
4. What was the total market value of the common stock?
5. Compute the book value per share of the preferred stock and the common stock.
Computing and recording a corporation's income tax (Obj. 8)

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Stockholders' Investment [same as stockholders' equity] Cumulative convertible preferred stock....... Common stock, $1 par value, authorized 40,000,000 shares; issued 16,000,000 shares.... [Additional] paid-in capital.. Retained earnings...... Total stockholders' investment.. ($ Thousands) $ 45 16,000 176,000 (77,165) $114,880