The stockholders' equity section from Tingle Corporation's balance sheet is as follows:

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1. Determine the book value per share of the preferred stock and of the common stock under the assumption there are no dividends in arrears on the preferred stock.
2. Determine the book value per share for each kind of stock under the assumption that two years' dividends are in arrears on the preferred stock.

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Stockholders' Equity Preferred stock, 10% cumulative and nonparticipating, $100 par value, $105 redemption value, 5,000 shares issued and outstanding Common stock, $10 par value, 90,000 shares issued and oustanding Retained earnings. Total stockholders' equity $ 500,000 900,000 400,000 $1,800,000