Jean Neftin was chatting with friends about stock investment ideas. One of his friends suggested that he consider Cabela Corporation. The friend noted that Cabela was coming out with a new product line that could be really hot.

Cabela's stock sells for $21 per share, and has a P/E of 15. The dividend yield is 3%. The company has had 10,000,000 shares outstanding for all of the past year, and the stock price is 2 times book value per share.

(a) Calculate Cabela's earnings per share, net income, dividend per share, and total stockholders’ equity.

(b) In addition to the preceding facts, assume that Cabela's also has $10,000,000 of 6% preferred stock outstanding all year. Dividends are current. The preferred stock was issued at par, but has a 110 call price. Recalculate net income and book value per common share based on this revised set of facts.