Problem

An analyst gathers the following information about Meyer, Inc.: • Meyer has 1,000 share...

An analyst gathers the following information about Meyer, Inc.:

• Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100, and liquidation value of $110.

• Meyer has 20,000 shares of common stock outstanding, with a par value of $20.

• Meyer had retained earnings at the beginning of the year of $5,000,000.

• Net income for the year was $70,000.

• This year, for the fi rst time in its history, Meyer paid no dividends on preferred or common stock.

What is the book value per share of Meyer’s common stock?

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Solutions For Problems in Chapter 14