Question

The stockholders’ equity section of Plaka Corporation’s balance sheet follows. Assuming one year’s dividend in arrears, determine the book value per share for both the preferred and the common stock. (Round to the nearest cent.)
Contributed capital:
Preferred stock, $100 par value, callable at $105 per share, 6 percent
cumulative, 5,000 shares authorized, 100 shares issued and outstanding ..$10,000
Common stock, $5 par value, 50,000 shares authorized, 5,000 shares
issued, 4,500 shares outstanding...................25,000
Additional paid-in capital.....................14,000
Total contributed capital.....................$49,000
Retained earnings........................47,500
Total contributed capital and retained earnings............$96,500
Less treasury stock, common (500 shares at cost)............7,500
Total stockholders’ equity.....................$89,000



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  • CreatedMarch 26, 2014
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