The equity section of Cyril Corporation\'s balance sheet shows the following Pre

Question

The equity section of Cyril Corporation's balance sheet shows the following Preferred stock-68 cumulative, $20 par value, 10,000 shares issued and outstanding $200,000 Common stock-$10 par value, 45,000 shares issued and outstanding 450,000 Retained earnings Total stockholders' equity 267,500 $917,500 This year's dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations 1. No preferred dividends are in arrears 2. Three years of preferred dividends are in arrears. Complete this question by entering your answers in the tabs below. Required Required Determine the book value per share of the preferred and common stock for no preferred dividends are in 2 arrears Book Value per Common Share Book Value per Common Share Choose Numerator: Choose Denominator: Book value per common share Required! Required 2

Explanation / Answer

Cyril Corporation's To Calculate book Value of Preferred Stock when no dividend in arrear Book Value per share=Preferred Stock/Number of Preferred stock Outstanding Choose Numerator/ Choose Denominator Book Value Per Preferred Share $                                                                                           200,000.00 $                     10,000.00 $                                                    20.00 To calculate book value per share of common stock when no dividend in arrear Book Value per share=(Shareholder's Equity-Preferred stock)/Number of Common stock outstanding Shareholder's Equity-Preferred Stock=($917500-$200000) 717500 Choose Numerator/ Choose Denominator Book Value Per Common Share $                                                                                           717,500.00 $                     45,000.00 $                                                    15.94 To Calculate book Value of Preferred Stock when Three Years dividend are arrear Book Value per share=(Preferred Stock+(Dividend* Number of Year Outstanding))/Number of Preferred stock Outstanding Preferred Outstaning Dividend=($200000*6%*3) $                     36,000.00 Preferred Stock $                   200,000.00 Total amount due to Preferred Stock holders $                   236,000.00 Choose Numerator/ Choose Denominator Book Value Per Preferred Share $                                                                                           236,000.00 $                     10,000.00 $                                                    23.60 To calculate book value per share of common stock when Three Years Preferred dividend are in arrear Book Value per share=(Shareholder's Equity-Preferred stock)/Number of Common stock outstanding Shareholder's Equity-Preferred Stock-Cumulative Dividend in arrear=($917500-$200000-36000) $                   681,500.00 Choose Numerator/ Choose Denominator Book Value Per Common Share $                                                                                           681,500.00 $                     45,000.00 $                                                    15.14

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.