Part B Short Answer 1. On December 31, 2001, Dorsey Company reports the following amounts: (5M) Preferred shares Common shares Retained earnings $1,100,000 3,900,000 1,780,000 Thinking /10 Marks The preferred shares are $7, no par value, cumulative and issued at $50 per share. One million common shares, issued at $39 per share, are issued. INSTRUCTIONS: Calculate the book value per common share for each of the following assumptions: (a) There are no preferred dividends in arrears. (b) Preferred dividends are two years in arrears