Book value per share of common stock, and preferred dividends in arrearsThe balance sheet of Moe Taylor, Inc., reported the following:
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Preferred stock, 7%, $30 par, 1,000 shares authorized, issued |
|
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and outstanding |
$30,000 |
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Common stock, no par value, 11,000 shares authorized, |
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5,600 shares issued |
226,000 |
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Retained earnings |
80,000 |
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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.