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Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value,...

Raphael Corporation’s balance sheet shows the following stockholders’ equity section.

Preferred stock—5% cumulative, $___ par value, 1,000 shares
authorized, issued, and outstanding		 $ 75,000
Common stock—$___ par value, 4,000 shares authorized, issued,
and outstanding		 120,000
Retained earnings 360,000
Total stockholders' equity $ 555,000

1. What are the par values of the corporation’s preferred stock and its common stock?

2. If no dividends are in arrears at the current date, what is the book value per share of common stock?


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

4. If two years’ preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $20,750, what total amount will be paid to the preferred and to the common shareholders?

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ekkarill92 answered 9 months ago
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