Soltech Company’s common stock is currently selling on a stock exchange at $90 per share...

Soltech Company’s common stock is currently selling on a stock exchange at $90 per share, and its current balance sheet shows the following stockholders’ equity section.

Required

1. What is the current market value (price per share) of this corporation’s common stock?

2. What are the par values per share of the corporation’s preferred stock and its common stock?

3. What are the book values per share of the preferred stock and the common stock?

4. Assume Soltech Company’s preferred stock has a call price of $280 per share. What are the book values per share of the preferred stock and the common stock?

Analysis Component

5. Discuss why the book value of common stock is not always a good estimate of its market value.