I have a question on acct 2301. Thank you! // D Assignment 11B(30 pts) × preterr

Question

I have a question on acct 2301. Thank you!

// D Assignment 11B(30 pts) × preterred stock 80000 X. ? | (D ezto.mheducation.com/hm.tpx 3.10 points Exercise 11-16 Book value per share LO A4 The equity section of Cyrl Corporation's balanoe sheet shows the tollowng Preferred stock-4% cumulative, $20 par value, 525 call price 10,000 shares issued and outstanding Common stock $10 par value, 40,000 shares issued and outstanding Retained earnings $ 200,000 400.000 267,500 Total stockholders equity $ 867,500 Detemine the bock value per share of the preterred and common stock under two separate situations. 1. No preferred dividends are in arrears. Book Value Per Preferred Share Choose Numerator: Choose Denominator: Book Value Per Preferred Share Book value per preferred share Book Value Per Common Share Choose Numerator: Choose Denominator: Book Value Per Common Share Book value per common share 144 AM O Type here to search w? RA ???ENG 5/2/2018

Explanation / Answer

Ans.1 No preferred dividends are in arrears: Book value per preferred share = Preferred equity / Number of preference shares issued and outstanding 250000 / 10000 25 per share *Preferred equity (at call price) = 200000 / 20 * 25 250000 Book value per common share = (Total stockholder's equity - Preferred equity) / Number of shares issued and outstanding (867500 - 250000) / 40000 617500 / 40000 15.4375 per share Ans.2 Three years of preferred dividends are in arrears: Book value per preferred share = (Preferred equity + Dividend) / Number of preference shares issued and outstanding (250000 + 24000) / 10000 27.4 per share *Preferred equity (called-up capital) = 200000 / 20 * 25 250000 *Dividend =    Preferred stock at par * 4% * 3 years 200000 * 4% * 3 24000 Book value per common share = (Total stockholder's equity - Preferred equity - Dividend arrears) / Number of shares issued and outstanding (867500 - 250000 - 24000) / 40000 593500 / 40000 14.8375 per share

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.