The stockholders’ equity section of Plaka Corporation’s balance sheet follows. Assuming one year’s dividend in arrears, determine the book value per share for both the preferred and the common stock. (Round to the nearest cent.)Contributed capital:Preferred stock, $100 par value, callable at $105 per share, 6 percent cumulative, 5,000 shares authorized, 100 shares issued and outstanding ..$10,000Common stock, $5 par value, 50,000 shares authorized, 5,000 shares issued, 4,500 shares outstanding……………….25,000Additional paid-in capital…………………14,000Total contributed capital…………………$49,000Retained earnings……………………47,500Total contributed capital and retained earnings…………$96,500Less treasury stock, common (500 shares at cost)…………7,500Total stockholders’ equity…………………$89,000View Solution:
The stockholders equity section of Plaka Corporation s balance sheet follows



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