Question

Required information Problem 13-5A Computing book values and dividend allocations LO C2, A4 {The following information applies to the questions displayed below] Raphael Corporation's balance sheet shows the following stockholders' equity section. $ 70,000 Preferred stock-5X cumulative, S par value, 1,600 shares authorized, issued, and outstanding Common stock- par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 100.ee 320.ee $490. Bee Problem 13.5A Part 3 3. If two years' preferred dividends are in arrears at the current date, what is the book value per share of common stock? Choose Numerator Stockholders' equity applicable to common shares Book Value Per Common Share Choose Denominator Number of common shares outstanding - - Book Value Per Common Share Book value per common shar

Answer 1

Shareholders equity applicatble to common stock holders Total Equity 4,90,000 Less: $ Preferred Stock 70,000 Accumulated Preferred Dividend 7,000 ($70000*5% 2years) Available for equity share holders 4,13,000 Book value per common share Numerator Denominator Number of common Shareholders equity applicatble / shares outstanding 4000 to common stock holders Book value per common share $ 103.25 4,13,000