Question

Below is the stockholders’ equity section of Picado Corporation’s balance sheet. Determine the book value per share for both the preferred and the common stock.
Contributed capital
Preferred stock, $100 per share, 6 percent cumulative, 20,000 shares
authorized, 400 shares issued and outstanding* ......... $ 40,000
Common stock, $5 par value, 200,000 shares authorized, 20,000 shares
issued, 18,000 shares outstanding ............... 100,000
Additional paid-in capital ................. 56,000
Total contributed capital ................... $196,000
Retained earnings ..................... 190,000
Total contributed capital and retained earnings ........ $386,000
Less: Treasury stock, common (2,000 shares at cost) ....... 30,000
Total stockholders’ equity ................ $356,000
*The preferred stock is callable at $105 per share, and one year’s dividends are in arrears.



$1.99
Sales0
Views55
Comments0
  • CreatedSeptember 10, 2014
  • Files Included
Post your question
5000