Calculate the book value per share of the common stock

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Reference no: EM132786295

Question - Shareholder's Equity:

Share capital: Preferred, $10, cumulative, callable at $103 each, 20,000 shares authorized, 5,000 shares issued and outstanding $ 400,000

Common, 100,000 shares authorized, 50,000 shares issued and outstanding 100,000 500,000

Retained earnings 485,000

Total shareholder's equity $ 985,000

Other information:

- The company was incorporated on January 1, 2014, and 40,000 common shares were issued on that date.

- On January 1, 2014 the company issued 3,000 preferred shares..

- On January 1, 2015 the company issued 1,000 more preferred shares.

- On January 1, 2016, the company issued 10,000 more common shares.

- On January 1, 2016, the company issued 1,000 more preferred shares.

REQUIRED - Calculate the Book Value per share of the common stock at December 31, 2016. The only dividends that have been declared totaled $32,000 in 2014.

Reference no: EM132786295

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