A firm has 1,000 shares of 12 percent cumulative preferred stock with a $200 par value and a $210 liquidation value. The firm also has 1,000 shares of common stock outstanding with a S10 par value. There is $200,000 of retained earnings and $12,000 of treasury stock. The firm has 5,000 authorized common shares and 500 treasury shares. There are two years of dividends in arrears. Instructions 1. Calculate book value per share 2. Briefly explain in your own words how book value per share can be used by analysts to evaluate a firm's stock market performance.