(L.OBJ. 2, 6) Analyzing the stockholders’ equity section of the balance sheet [15—20 min...

(L.OBJ. 2, 6) Analyzing the stockholders’ equity section of the balance sheet [15—20 min]

The balance sheet of Ball craft, Inc., reported the following:

Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Balcraft common stock was $31 per share.

Requirements

1. Is the preferred stock cumulative or noncumulative? How can you tell?

2. What is the total paid-in capital of the company?

3. What was the total market value of the common stock?

4. Compute the book value per share of the common stock.