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Question
The stockholders' equity section of a corporation's balance sheet follows:
| Preferred stock, $25 par value, 6%, cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding | $125,000 |
| Contributed capital in excess of par value, Preferred stock | 50,000 |
| Common stock, $10 par value, 50,000 shares authorized, 10,000 shares issued and outstanding | 100,000 |
| Contributed capital in excess of par value, common stock | 40,000 |
| Retained earnings | 95,000 |
| Total stockholders equity | $410,000 |
(1) Assuming that the preferred stock is not callable and no dividends are in arrears, compute the book values per preferred share and per common share.
(2) Assuming that the preferred stock has a call price of $30 per share and there is one year of cumulative preferred dividends is in arrears, compute the book values per preferred share and per common share.
Answer
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Related questions
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Q:
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Q:
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A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
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E. Markup percentage divided by total cost.
Q:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.