(L.OBJ. 6) Book value per share of common stock, and preferred dividends in arrears [10—...

(L.OBJ. 6) Book value per share of common stock, and preferred dividends in arrears [10—15 min]

The balance sheet of Mitt Trull, Inc., reported the following:

Requirement

1. Compute the book value per share of Trull’s preferred and common stock if three years’ preferred dividends (including dividends for the current year) are in arrears.