Reference no: EM132756537

Problem 1: Preferred Stock (1000 shares) totals $100,000 and has a call price of $110 per share. Common Stock totals $200,000, Additional Paid-in Capital, $50,000, and Retained Earnings, $50,000. A total of 10,000 shares of common stock have been issued and are outstanding. Assuming no dividends are in arrears, what is the book value of the preferred stock?

A. $100.00 per share

B. $101.00 per share

C. $110.00 per share

D. $125.00 per share

E. None of the above

Problem 1: Preferred Stock, 10%, $100 par, totals $500,000. Common Stock, $100 par, totals $600,000, and Additional Paid-in Capital is $200,000. Retained Earnings has a deficit balance of $20,000 and dividends are $100,000 in arrears. What is the book value per share of common stock?

A. $100 per share

B. $108.33 per share

C. $113.33 per share

D. $133.33 per share

E. $137.50 per share