What is the book value per share of preferred stock

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Problem 1: Preferred Stock, $100 par, callable at $105, totals $500,000. Common Stock, $100 par, totals $500,000 and Additional Paid-in Capital is $100,000. Retained Earnings totals $250,000. If there are no dividends in arrears, what is the book value per share of the common stock?

A. $100 per share

B. $135 per share

C. $165 per share

D. $175 per share

E. None of the above

Problem 2: Preferred Stock, 10%, $100 par, totals $500,000. Common Stock totals $600,000 and Additional Paid-in Capital is $200,000. Retained Earnings has a deficit balance of $20,000 and dividends are $100,000 in arrears. What is the book value per share of preferred stock?

A. $100 per share

B. $105 per share

C. $120 per share

D. $130 per share

E. None of the above

Reference no: EM132756528

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