The following information is necessary to compute the net assets (stockholders equity) and book value per share of common stock for Rothchild Corporation 8 cumulative preferred stock, $100 par $200,000 Common stock, $5 par, authorized 100,000 shares, issued 60,000 shares 300,000 Additional paid in ...

a Net assets stockholders equity 8 cumulative preferred stock 200000 Common stock 5 par 6 ...

The following information is necessary to compute the net assets (stockholders equity) and book value per share

Question:

The following information is necessary to compute the net assets (stockholders’ equity) and book value per share of for Rothchild cumulative preferred stock, $100 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000
Common stock, $5 par, authorized 100,000 shares, issued 60,000 shares . . . . . . . 300,000
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452,800
Deficit (negative amount in retained earnings) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,800
Dividends in arrears on preferred stock, 1 full year . . . . . . . . . . . . . . . . . . . . . . . . . 16,000
a. Compute the amount of net assets (stockholders’ equity).
b. Compute the book value per share of .
c. Is book value per share (answer to part b) the amount common stockholders should expect to receive if Rothchild were to cease operations and liquidate? Explain

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...