The stockholders' equity of Westester Corporation as of December 31, 2010, is as follows:

The preferred stock has one year's dividends in arrears.
a. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)
b. Assume the preferred stock has two years' dividends in arrears. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)

Question

The stockholders' equity of Westester Corporation as of December 31, 2010, is as follows:
  
The preferred stock has one year's dividends in arrears. 
a. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)
b. Assume the preferred stock has two years' dividends in arrears. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)

Quizplus · Accepted Answer

The Answer of The stockholders' equity of Westester Corporation as of December 31, 2010, is as follows:
  
The preferred stock has one year's dividends in arrears. 
a. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)
b. Assume the preferred stock has two years' dividends in arrears. Compute the book value per share of preferred stock and the book value per share of common stock. (Round to the nearest cent.)

The Stockholders' Equity of Westester Corporation as of December 31