WEEK SEVEN

[The following information applies to the questions displayed below.]

Raphael Corporations common stock is currently selling on a stock exchange at $164 per share, and its current balance sheet shows the following stockholders equity section:

Preferred stock5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding	$	75,000
Common stock$___ par value, 4,000 shares authorized, issued, and outstanding		200,000
Retained earnings		390,000
Total stockholders' equity	$	665,000

Required:
1.	What is the current market value (price) of this corporations common stock?

Market price

$164

per share

2.	What are the par values of the corporation's preferred stock and its common stock?

	Par Value
Corporation's preferred stock	$75
Corporation's common stock	$50

3.	If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock?

Book Value Per Preferred Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Preferred Share
Stockholders' equity applicable to preferred shares	/	Number of preferred shares outstanding	=	Book value per preferred share
$75,000	/	1,000	=	$75.00

Book Value Per Common Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Common Share
Stockholders' equity applicable to common shares	/	Number of common shares outstanding	=	Book value per common share
$590,000	/	4,000	=	$147.50

4.	If two years' preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock?

Book Value Per Preferred Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Preferred Share
Stockholders' equity applicable to preferred shares	/	Number of preferred shares outstanding	=	Book value per preferred share
	/	1,000	=
Book Value Per Common Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Common Share
Stockholders' equity applicable to common shares	/	Number of common shares outstanding	=	Book value per common share
	/	4,000	=

5.	If two years preferred dividends are in arrears and the preferred stock is callable at $85 per share, what are the book values per share of the preferred stock and the common stock?

Book Value Per Preferred Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Preferred Share
Stockholders' equity applicable to preferred shares	/	Number of preferred shares outstanding	=	Book value per preferred share
	/	1,000	=
Book Value Per Common Share
Choose Numerator:	/	Choose Denominator:	=	Book Value Per Common Share
Stockholders' equity applicable to common shares	/	Number of common shares outstanding	=	Book value per common share
	/	4,000	=

6.1	If two years preferred dividends are in arrears and the board of directors declares cash dividends of $17,250, what total amount will be paid to the preferred and to the common shareholders?

Total amount paid to the preferred shareholders
Total amount paid to the common shareholders

6.2	What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)

Dividend per share

PLEASE FILL IN THE BLANK WITH CORRECT ANSWERS/ FULLY ANSWER