Question: Please help me on my problem solving activity, I would very much appreciate thanks COVIDA, Inc. began operations in January 2019, and reported the following
Please help me on my problem solving activity, I would very much appreciate thanks
COVIDA, Inc. began operations in January 2019, and reported the following results for each of its three years of operations.
2019 300,000 net loss
202030,000 net loss
20213,950,000 net income
At December 31, 2021, the company's capital accounts were as follows:
5% cumulative preferred stock, 100 par, authorized: 100,000 shares,
Issued and outstanding: 60,000 shares 6,000,000
Common stock, 10 par, authorized: 1,000,000 shares,
Issued and outstanding: 800,000 shares8,000,000
FCPA has never paid a cash or stock dividend and there has been no change in the capital accounts since it began operations.
Q1. What is the book value per share of the preferred stock on December 31, 2021? _______
Q2. What is the book value per share of the common stock on December 31, 2021? _______
Q3. Assume that the preferred stock has a liquidation value of 105 per share. What is the book value per share of the preferred stock on December 31, 2021? _______
Q4. Assume that the preferred stock has a liquidation value of 105 per share. What is the book value per share of the common stock on December 31, 2021? _______
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
