Reference no: EM13525055

The equity of Webster Corporation's balance sheet shows the following

Preferred stock-- 5% Cumulative, $10 par value, $15 call price
10,000 shares issued and outstanding ............................................$100,000
Common Stock-- $10 par value, 55,000 shares issued and
outstanding ...........................................................................$550,000
Retained Earnings ................................................................... $267,500

Total stockholders' equity ......................................................... $917,500

Determine the book value per share of the preferred and common stock under two separate situations.

1. No preferred dividends are in arrears.

2. Three years of preferred dividends are in arrears.