Determining Book Value Per Share
Shown Below Is Information Relating

question 94

Essay

Determining book value per share
Shown below is information relating to the stockholders' equity of Churchill, Inc.:
From the above information, compute the following:
(a) Number of shares of preferred stock issued and outstanding
(b) Average issue price per share of common stock
(c) Total paid-in capital
(d) Total stockholders' equity
(e) Book value per share of common stock
$$\begin{array} { | l | l | } \hline 6 \% \text { cumulative preferred stock, } \$ 100 \text { par } & \$ 1,200,000 \\\hline \text { Common stock, } \$ 10 \text { par } 1,000,000 \text { shares authorized } & \$ 3,000,000 \\\hline \text { Additional paid-in capital; common stock } & \$ 6,000,000 \\\hline \text { Deficit (negative retained earnings) } & \$1,200,000 \\\hline \text { Dividends in arrears on preferred stock, 1 full year } & ? \\\hline\end{array}$$

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Definitions:

Caffeine Intake

The consumption of the stimulant caffeine, found in coffee, tea, and many soft drinks, which affects the central nervous system.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Independent Variable

"A manipulated experimental factor; the variable that the experimenter changes to see what its effects are."

Longitudinal Design

A special kind of systematic observation, used by correlational researchers, that involves obtaining measures of the variables of interest in multiple waves over time.