Reference no: EM132560662

COVIDA, Inc. began operations in January 2019, and reported the following results for each of its three years of operations.

2019 ? 300,000 net loss

2020 30,000 net loss

2021 3,950,000 net income

At December 31, 2021, the company's capital accounts were as follows:

5% cumulative preferred stock, 100 par, authorized: 100,000 shares,

Issued and outstanding: 60,000 shares? 6,000,000

Common stock, 10 par, authorized: 1,000,000 shares,

Issued and outstanding: 800,000 shares 8,000,000

FCPA has never paid a cash or stock dividend and there has been no change in the capital accounts since it began operations.

Question 1: What is the book value per share of the preferred stock on December 31, 2021? _______

Question 2: What is the book value per share of the common stock on December 31, 2021? _______

Question 3: Assume that the preferred stock has a liquidation value of ?105 per share. What is the book value per share of the preferred stock on December 31, 2021?

Question 4: Assume that the preferred stock has a liquidation value of 105 per share. What is the book value per share of the common stock on December 31, 2021?