Please Refer to the Equity Section of the Balance Sheet

question 119

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 common 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:

External Role

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Technology

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The process by which businesses or other organizations develop international influence or start operating on an international scale, increasing connectivity and interdependence among nations.

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The stages that a product goes through from its inception, through growth and maturity, and eventually to its decline and discontinuation in the market.