Using data from the stockholders’ equity section of Tramot Corporation’s balance sheet that follows, and assuming one year’s dividend in arrears, compute 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, 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