Reference no: EM132809660

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:

1. The company was incorporated on January 1, 2014, and 40,000 common shares were issued on that date.
2. On January 1, 2014 the company issued 3,000 preferred shares..
3. On January 1, 2015 the company issued 1,000 more preferred shares.
4. On January 1, 2016, the company issued 10,000 more common shares.
5. On January 1, 2016, the company issued 1,000 more preferred shares.

REQUIRED:

Problem 1: 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