Reference no: EM131915305
Question - The balance sheet of Ballcraft, Inc., reported the following:
Preferred stock, $6 par, 6% 5,000 shares authorized and issued - $30,000
Common stock, $4.00 par value, 45,000 shares authorized; 10,000 shares issued - $40,000
Additional paid-in-capital-common - $219,000
Total paid-in-capital - $289,000
Retained earnings - $90,000
Total stockholder's equity - $379,000
Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Ballcraft common stock was $31 per share.
Requirements:
1. Is the preferred stock cumulative or noncumulative? How can you tell?
2. What is the total paid-in-capital of the company?
3. What was the total market value of the common stock?
4. Compute the book value per share of the common stock.