question archive The book value per share of preferred stock is: Reling Company reports the following information as of 12/31/05 10% cumulative preferred stock, par value $10, liquidation value $11; $100,000 20,000 share authorized and issued, 10,000 share outstanding Common stock - authorized 50,000 and 40,000 outstanding, $1 par value Additional paid-in capital $40,000 $350,000 $230,000 Retained earnings ????: : B
The book value per share of preferred stock is: Reling Company reports the following information as of 12/31/05 10% cumulative preferred stock, par value $10, liquidation value $11; $100,000 20,000 share authorized and issued, 10,000 share outstanding Common stock - authorized 50,000 and 40,000 outstanding, $1 par value Additional paid-in capital $40,000 $350,000 $230,000 Retained earnings ????: : B
Subject:AccountingPrice:2.84 Bought3
The book value per share of preferred stock is: Reling Company reports the following information as of 12/31/05 10% cumulative preferred stock, par value $10, liquidation value $11; $100,000 20,000 share authorized and issued, 10,000 share outstanding Common stock - authorized 50,000 and 40,000 outstanding, $1 par value Additional paid-in capital $40,000 $350,000 $230,000 Retained earnings ????: : B. $20. : A. $22. B. $20. C. $11. D. $10.
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The book value of one share of preferred stock is its call price plus any dividends in arrears. If a 10% cumulative preferred stock having a par value of $10 has a call price of $11, and the corporation does not owes any dividends, the book value of this preferred stock is $11per share(call price of $11 and no dividends in arrears since the stock is not due any dividend).
The book value per share of the preferred stock equals the call price of $11.
