Question: The stockholders’ equity of Franklin Company is
The stockholders’ equity of Franklin Company is as follows:
Given a redemption value of $109 per share for the preferred stock, calculate the book value per share of preferred and common stock, assuming the following:
a. No preferred dividends in arrears
b. Two years’ preferred dividends in arrears
Transcribed Image Text:
Stockholders' Equity Paid-In Capital: Preferred 10% Stock, $95 par value, authorized 51,000 shares, cumulative and nonparticipating, 3,900 shares issued and outstanding $370,500 Paid-In Capital in Excess of Par Value-Preferred 53,000 Total Paid-In Capital by Preferred Stockholders $423,500 Common Stock, $45 par value, authorized 11,400 shares, 6,000 shares issued and outstanding $270,000 Paid-In Capital in Excess of Par Value-Common 62,000 Total Paid-In Capital by Common Stockholders 332,000 Total Paid-In Capital $755,500 Retained Earnings 161,000 Total Stockholders' Equity $916,500
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