Please Refer to the Equity Section of the Balance Sheet

question 75

Multiple Choice

Please refer to the equity section of the balance sheet, below:
$\begin{array}{|l|l|}\hline\text { Preferred stock, } \$ 50 \text { par, } 4 \% \text {, cumulative } & \$ 5,000 \\\hline 1,000 \text { shares authorized, } 100 \text { shares outstanding } & \\\hline \text { Common stock, } \$ 0.01 \text { par } & 120\\\hline 1,000,000 \text { shares authorized, } 12,000 \text { shares outstanding } & \\\hline \text { Paid-in capital in exces of par } & 359,600 \\\hline \text { Retained earnings } & 153,280 \\\hline \text { Total stockholders' equity } & \$ 518,000\\\hline\end{array}$
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Assume there are $600 of preferred dividends in arrears which includes the current year. What is the book value per share of preferred stock?

• A) $42.70 per share
• B) $43.17 per share
• C) $56.00 per share
• D) $41.00 per share

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Definitions:

Acupuncture

A traditional Chinese medical practice involving the insertion of thin needles into specific points on the body to relieve pain and treat various physical, mental, and emotional conditions.

Qi

In traditional Chinese medicine, the vital life force or energy that flows through the body, maintaining balance and health.

Acupressure

A form of traditional Chinese medicine that involves applying pressure to specific points on the body to relieve pain or treat various health conditions.

Physical Therapy

A treatment method aiming to alleviate pain, help recover from injury, improve mobility, or manage chronic conditions through physical methods such as exercises and massages.