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Preferred stock5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common stock$10 par value, 45,000 shares issued and outstanding 450,000
Preferred stock5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding | $ | 250,000 | ||
Common stock$10 par value, 45,000 shares issued and outstanding | 450,000 | |||
Retained earnings | 267,500 | |||
Total stockholders equity | $ | 967,500 | ||
Determine the book value per share of the preferred and common stock under two separate situations.
1. No preferred dividends are in arrears.
Preferred stock5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding | $ | 250,000 | ||
Common stock$10 par value, 45,000 shares issued and outstanding | 450,000 | |||
Retained earnings | 267,500 | |||
Total stockholders equity | $ | 967,500 | ||
Determine the book value per share of the preferred and common stock under two separate situations.
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in arrears.
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