Book value per share of common stock, and preferred dividends in arrears
The balance sheet of Moe Taylor, Inc., reported the following:
|
Preferred stock, 7%, $30 par, 1,000 shares authorized, and outstandingissued |
$ 30,000 |
|
Common stock, no-par value, 11,000 shares authorized, 5,600 shares issued |
226,000 |
|
Retained earnings |
80,000 |
|
Total stockholders’ equity |
$ 336,000 |
Requirement
1.Compute the book value per share of Taylor’s preferred and common stock if three years’ preferred dividends (including dividends for the current year) are in arrears.