Reference no: EM131780033

Assignment

The following info comes from Black Corporation as of December 31, 2015

Preferred stock, cumulative, 8%, $100 par $100,000
Paid-in capital in excess of par on preferred 200,000
Common stock, $50 par 200,000
Paid-in capital in excess of par on common 200,000
Donated capital 50,000
retained earnings 100,000
TOTAL STOCKHOLDERS EQUITY $850,000

Dividends are declared at the end of the year. The corporation did not declare a dividend in 2014 or 2015. All dividends were paid on the preferred stock prior to 2014. What is the book value per share for the preferred stock and common stock?

A. The book value is $120 per share for preferred stock and $182.50 per share for common stock.

B. The book value is $116 per share for preferred stock and $183.50 per share for common stock.

C. The book value is $100 per share for preferred stock and $187.50 per share for common stock.

D. The book value is $320 per share for preferred stock and $132.50 per share for common stock.