IMA Believer Corp.'s balance sheet reported the following shareholders' equity as of December 31,2017:
Share capital:
Preferred shares,$100 stated value,$5 cumulative,10,000 shares
Common shares 200,000 shares authorized,50,000
Assuming there are 3 years' dividends in arrears (including that of the current year),determine (1)preferred equity and (2)book value per share of common shares.

Question

IMA Believer Corp.'s balance sheet reported the following shareholders' equity as of December 31,2017:
Share capital:
Preferred shares,$100 stated value,$5 cumulative,10,000 shares
  Common shares 200,000 shares authorized,50,000
  Assuming there are 3 years' dividends in arrears (including that of the current year),determine (1)preferred equity and (2)book value per share of common shares.

Quizplus · Accepted Answer

The Answer of IMA Believer Corp.'s balance sheet reported the following shareholders' equity as of December 31,2017:
Share capital:
Preferred shares,$100 stated value,$5 cumulative,10,000 shares
  Common shares 200,000 shares authorized,50,000
  Assuming there are 3 years' dividends in arrears (including that of the current year),determine (1)preferred equity and (2)book value per share of common shares.