Reference no: EM132756515

Problem 1: Common Stock totals $200,000, Additional Paid-in Capital, $50,000, and Retained Earnings, $40,000. If 20,000 shares of common stock are authorized and 10,000 shares have been issued, what is the book value per common share?

A. $30.00

B. $28.00

C. $25.00

D. $20.00

E. None of the above

Problem 2: One thousand shares of 10% preferred stock totals $100,000. Common Stock totals $200,000, Additional Paid-in Capital, $50,000, and Retained Earnings, $150,000. A total of 20,000 shares of common stock have been issued and are outstanding. What is the book value per share of the common stock?

A. $10.00 per share

B. $11.00 per share

C. $15.00 per share

D. $20.00 per share

E. None of the above