Question 1 [13 points]

United Corporation's common shares are currently selling on a stock exchange at $10 per share, and a recent balance sheet shows the information below. Using the information given, answer the following questions:

United Corporation Equity Section of Balance Sheet December 31, 2014 Contributed capital Preferred shares, $4.00 cumulative, 15,000 shares authorized, issued, and outstanding.. 110,000 common shares authorized, issued, and outstanding. Total contributed capital, Retained eamings Total equity 195,000 1,100,000 1,295,000 450,000 1,745,000 a) Calculate the following value. Market value of common shares b) Calculate the following value. Capital contributed by residual owners c) Assuming no dividends are in arrears, calculate the following values. Book value per common share Book value per preferred share d) Assuming three years of preferred dividends are in arrears, calculate the following values. Book value per common share. Book value per preferred share, e) Assuming three years of preferred dividends are in arrears, and the board of directors declares dividends of $361,000, calculate the following values. Dividends to common shareholders Dividends to preferred shareholders Dividends per common share