Reference no: EM132779595
A corporation reports the following year-end stockholders' equity:
Contributed capital:
Preferred stock, 8%, 100,000 shares authorized, 50,000 shares issued .............................................. $ 2,500,000
Contributed capital in excess of par, Preferred ............................................................................................ 125,000
Common stock, $10 par, 500,000 shares Authorized, 400,000 shares issued ................ 4,000,000
Contributed capital in excess of par, Common .................................................................. 1,200,000
Total contributed capital .......................................................... $ 7,825,000
Retained earnings ............................................................................................ 10,775,000
Total stockholders' equity ............................................................................................ $18,600,000
Problem 1: what is Par value for the preferred stock?
Problem 2: what is the book value per share for both preferred stock and common stock assuming a call price per share of $52 for preferred and no dividends in arrears?