Problem:
The preferred stock has a call price of $103 per share plus dividends in arrears. Only one year of dividends are in arrears. Calculate the book value per (1) preferred share, and (2) common share.
|
Preferred stock, $100 par value, 9%
|
|
|
|
|
cumulative and nonparticipating, 5000
|
|
|
|
|
share outstanding---------------------------
|
$500,000
|
|
|
Paid- in capital in excess of
|
|
|
|
|
|
par value, preferred stock---------------------
|
50,000
|
|
|
Total capital paid- in by preferred
|
|
|
|
|
|
stockholders-------------------------------
|
|
$550,000
|
|
Common stock, $5 par value, 150000 shares
|
|
|
|
|
outstanding-------------------------------
|
$750,000
|
|
|
Paid- in capital in excess of par value,
|
|
|
|
|
common stock-----------------------------
|
150,000
|
|
|
Total capital paid- in by common
|
|
|
|
|
|
stockholders-------------------------------
|
|
900,000
|
|
Total paid- in capital--------------------------
|
|
$1,450,000
|
|
Retained earnings----------------------------
|
|
1,660,000
|
|
Total stockholders' equity----------------------
|
|
$3,110,000
|