Book value per share of common stock Bronze Tint Trust has the following stockholders’ equity:
|
Paid in capital: |
|
|
Preferred stock, 5%, $10 par, 6,000 shares authorized, 4,500 shares issued |
$45,000 |
|
Common stock, $0.20 par, 1,200,000 shares authorized and issued |
240,000 |
|
Paid in capital in excess of par—common |
400,000 |
|
Total paid in capital |
$685,000 |
|
Retained earnings |
255,000 |
|
Total stockholders’ equity |
$940,000 |
Bronze Tint has not declared preferred dividends for five years (including the current year).
Requirement
1. Compute the book value per share of Bronze Tint’s preferred and common stock.