The common stock of Lang Corporation is selling on a stock exchange for \(\$ 90\) per share. The stockholders' equity of the corporation at December 31, 1998, consists of:

Assume that in liquidation the preferred stock is entitled to par value plus cumulative unpaid dividends.

a. What is the total market value of all of the corporation's common stock?

b. If all dividends have been paid on the preferred stock as of December 31, 1998, what are the book values of the preferred stock and the common stock?

c. If two years' dividends were due on the preferred stock as of December 31, 1998, what are the book values of the preferred stock and common stock?

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Stockholders' equity: Paid-in capital: Preferred stock-9% cumulative, $120 par value, $120 liquidation value, 3,000 shares authorized, issued, and outstanding. Common stock-$72 par value, 30,000 shares authorized, issued. and outstanding Total paid-in capital Retained earnings Total stockholders' equity $ 360,000 2,160,000 $2,520,000 354,600 $2,874,600