Question

Raphael Corporation’s common stock is currently selling on a stock exchange at $180 per share, and its current balance sheet shows the following stockholders’ equity section:

Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding	$	55,000
Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding		160,000
Retained earnings		340,000
Total stockholders' equity	$	555,000
1. What is the current market value (price) of this corporation’s common stock? Market price per share 2. What are the par values of the corporation’s preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 3. If no dividends are in arrears, what is the book value per share of common stock? Book Value Per Common Share Choose Numerator: / Choose Denominator: = Book Value Per Common Share / = Book value per common share / =

4. If two years’ preferred dividends are in arrears, what is the book value per share of common stock?

	Book Value Per Common Share Choose Numerator: / Choose Denominator: = Book Value Per Common Share / = Book value per common share / =

5.1 If two years’ preferred dividends are in arrears and the board of directors declares cash dividends of $20,550, what total amount will be paid to the preferred and to the common shareholders?

	Total amount paid to the preferred shareholders Total amount paid to the common shareholders

5.2 What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)

	Dividend per share

Answer 1