From the following,determine the book value per share for preferred and common stocks,assuming $2,000 of dividends are in arrears on the preferred stock.
$\begin{array}{llcc}
\text { Stockholders' Equity } & \
\text { Preferred Stock, $ 8 \% $ cumulative and } &\
\text {$ \$ 10 $ par value, $ \$ 12 $ redemption value } &\
\text { 5,000 shares issued and outstanding } &\$20,000\
\text { Common Stock, \$1 par value, 40,000 shares } &\
\text { issued and outstanding } &40,000\
\text { Retained Earnings} &8,000\
\
\text {Total Stockholders' Equity } &\underline{\underline{\$68,000}}\

\end{array}$

Question

From the following,determine the book value per share for preferred and common stocks,assuming $2,000 of dividends are in arrears on the preferred stock.
$\begin{array}{llcc}
  \text { Stockholders' Equity } &  \
 \text { Preferred Stock, \( 8 \% $ cumulative and } &\
 \text {$ \$ 10 $ par value, $ \$ 12 $ redemption value  } &\
 \text { 5,000 shares issued and outstanding } &\$20,000\
 \text { Common Stock, \$1 par value, 40,000 shares } &\
 \text { issued and outstanding } &40,000\
 \text {  Retained Earnings} &8,000\
\
 \text {Total Stockholders' Equity  } &\underline{\underline{\$68,000}}\

\end{array}\)

Quizplus · Accepted Answer

The Answer of From the following,determine the book value per share for preferred and common stocks,assuming $2,000 of dividends are in arrears on the preferred stock.
$\begin{array}{llcc}
  \text { Stockholders' Equity } &  \
 \text { Preferred Stock, \( 8 \% $ cumulative and } &\
 \text {$ \$ 10 $ par value, $ \$ 12 $ redemption value  } &\
 \text { 5,000 shares issued and outstanding } &\$20,000\
 \text { Common Stock, \$1 par value, 40,000 shares } &\
 \text { issued and outstanding } &40,000\
 \text {  Retained Earnings} &8,000\
\
 \text {Total Stockholders' Equity  } &\underline{\underline{\$68,000}}\

\end{array}\)

From the Following,determine the Book Value Per Share for Preferred