1. Stockholders equity:

6% preferred stock, $100 par value, .............................................$20,000,000

500,000 shares authorized.

Common stock, $10 par value,.......................................................$16,000,000

3,000,000 shares authorized

Additional paid-in capital:

Preferred stock............................................... $400,000

Common stock................................................$25,600,000 $ 26,000,000

Retained earnings.............................................................................$4,500,000

Total stockholders equity...............................................................$66,500,000

a) 6% preferred stock, $100 par value. Explain the meaning of this sentence in your own words

b) How many shares of preferred stock have been issued?

c) How many shares of common stock have been issued?

d) How much dividends do the preferred stockholderes receive?

e) What is the market price of the common stock?

f) What is the total amount of legal capital?

g) What is the total paid-in capital?

h) What is the book value per share of common stock? (Assume no dividends in arrears)

i) What is the book value per share of common stock assuming that dividends are one year in arrears?