Using data from the stockholders equity section of Soong Corporations balance sheet shown below, compute the book

Question:

Using data from the stockholders’ equity section of Soong Corporation’s balance sheet shown below, compute the book value per share for both the preferred and the common stock.

Contributed capital

preferred stock, $100 par value, 8 percent cumulative,

20,000 shares authorized, 1,000 shares issued and outstanding* ........ $ 100,000

Common stock, $10 par value, 200,000 shares authorized,

80,000 shares issued and outstanding .................... 800,000

Additional paid-in capital ........................ 1,032,000

Total contributed capital ......................... $1,932,000

Retained earnings ........................... 550,000

Total stockholders’ equity ....................... $2,482,000

* The preferred stock is callable at $108 per shares, and one-years dividends are in arrears.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...