Calculate the book value per share of common stock

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The following information was taken from Wicom's financial statements as of December 31, 2006.

Preferred stock - 100,000 shares authorized, issued and             $1.000.000

outstanding: $10 par value: $11 liquidation value

Common stock, par value $0.50. Authorized                              230,000

1,000,000 shares; issued - 460,000 shares

Capital contributed in excess of par value                                4.750.000

Retained earnings                                                        (500,000)

Treasury stock, at cost (50,000 shares)                              (500,000)

Total stockholders equity                                              $4.980.000

Problem 1: Assume that the company also had $1,000,000 worth of convertible bonds. The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share. The stock is currently trading at $30 per share.

Problem 2: Calculate the book value per share of common stock taking into account dilutive effects of the above.

Reference no: EM132480978

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