Question: 2. Balls R Us's common shares are currently selling on a stock exchange at $100 per share and a recent balance sheet shows the
2. Balls R Us's common shares are currently selling on a stock exchange at $100 per share and a recent balance sheet shows the following information.: Shareholders Equity Contributed Capital Preferred shares, $10 cumulative, 2,500 shares Authorized and outstanding Common shares 6,000 shares authorized and outstanding Total contributed capital $600,000 $500.000 $1,100,000 $ 450.000 $1,550,000 Retained Earnings Total Shareholders Equity Required: Show all calculations for full marks (17 marks) (a) What is the market value of the corporation's common shares. (b) How much capital was contributed by the residual owners of the company. (c) If no dividends are in arrears, what are the book values per share of the preferred shares and common shares (d) If two years preferred dividends are in arrears, what are the book values per share of the preferred shares and common shares
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Solution a Market value 10000 per share given x 6000 ... View full answer
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