Compute the Book Values Per Share for (A)preferred and (B)common $\quad$

question 97

Essay

Compute the book values per share for (a)preferred and (b)common stock for Klemperer Corporation,whose stockholders' equity as of December 31,20xx,was as follows.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Stockholders' Equity }$
$\begin{array}{|lr|}\hline\text { Contributed capital }\\ \text {Preferred stock - 6 percent cumulative, \( \$ 100 \) par value, }\\\text {40,000 shares issued and outstanding (1 year's dividends }\\\text {in arrears), callable at 110}&\$40,000,000\\\text {Common stock - \( \$ 5 \) par value, 4.000 .000 shares authorized}\\ 3,200,000 \text { shares issued and outstanding } & 16,000,000 \\\text { Additional paid-in capital, common } & 8,400,000 \\\text { Total contributed capital } & \$ 28,400,000 \\\text { Retained earnings } & 3,600,000 \\\text { Total stockholders' equity } & \$ 32,000,000 \\\hline\end{array}$

---

Definitions:

Plastic Parts

Components or materials made out of plastic, often used in manufacturing and production of various goods.

Direct Materials

Essential parts that directly contribute to the fabrication of particular merchandise or services.

Product Cost

The total amount incurred to manufacture a product, including direct materials, labor, and overhead expenses.

Machine Operator's Wages

Compensation paid to employees who operate machinery as part of the production process, typically considered direct labor costs.