a. Shoup Corporation has 9,000 shares of $10 par value common stock and 5,000 shares of $50 par value, 10 percent cumulative preferred stock outstanding. All shares were issued at par value. In addition, retained earnings total $90,000. If the preferred stock is callable at $54 per share, and one year's dividends are in arrears, compute book value per share of preferred stock.
b. Assume the same facts as in a above. Calculate book value per share of common stock.
c. Assume the same facts as in a above and that Shoup Corporation declares a 5-for-1 stock split on its common stock. After the split, total par value of common stock equals what amount?
d. Assume the same facts as in a above and that Shoup Corporation declares a 12 percent stock dividend on its preferred stock. If the market value on the declaration date was $70 per share, for what amount will Preferred Stock Distributable be credited?

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The Answer of a. Shoup Corporation has 9,000 shares of $10 par value common stock and 5,000 shares of $50 par value, 10 percent cumulative preferred stock outstanding. All shares were issued at par value. In addition, retained earnings total $90,000. If the preferred stock is callable at $54 per share, and one year's dividends are in arrears, compute book value per share of preferred stock.
b. Assume the same facts as in a above. Calculate book value per share of common stock.
c. Assume the same facts as in a above and that Shoup Corporation declares a 5-for-1 stock split on its common stock. After the split, total par value of common stock equals what amount?
d. Assume the same facts as in a above and that Shoup Corporation declares a 12 percent stock dividend on its preferred stock. If the market value on the declaration date was $70 per share, for what amount will Preferred Stock Distributable be credited?

A Shoup Corporation Has 9,000 Shares of $10 Par Value