Lemma Corporation Has Total Contributed Capital of $600,000 and Retained

question 44

Multiple Choice

Lemma Corporation has total contributed capital of $600,000 and retained earnings of $340,000.It has 1,000 shares of $100 par value preferred stock with no dividends in arrears and 5,000 shares of $100 par value common stock.The preferred stock is callable at 105.The book value of each share of common stock is

• A) $168.
• B) $93.
• C) $167.
• D) $188.

---

Definitions:

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.

Presented

Shown, given, or made available for viewing or consideration.

Payment

The transfer of money or goods from one party to another as compensation for goods or services provided or as a fulfillment of a legal obligation.

Maker

In financial terms, it refers to the entity that creates or issues a promissory note or draft.