Please refer to the equity section of the balance sheet. Assume there are $600 o

Question

Please refer to the equity section of the balance sheet. Assume there are $600 of preferred dividends in arrears which includes the current year. What is the book value per share of preferred stock? A) $42.70 per share B) $43.17 per share C) $56.00 per share D) $41.00 per share 7. Please refer to the equity section of the balance sheet, below: Assume there are $600 of preferred dividends in arrears which includes the current year. what is the book value per share of common stock? A) $42.70 per share B) $43.17 per share C) $56.00 per share D) $41.00 per share

Explanation / Answer

6) Book value per share = Par value + (Total dividend in arrear /number of shares)

                                 = 50 + (600 / 100)

                                 = 50 +6

                                 = $ 56 per share

correct option is " C"

7)Book value per share = [Common stock +additional capital +retained earning -Preferred dividend outstanding)/number of shares

      = (120+359600+153280-600)/12000

         = 512400/12000

          = $ 42.7 per share

correct option is ""A"

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