P11-29A -Ballcraft, Inc - Stockholder’s equity

 P11-29A - Ballcraft, Inc - Stockholder’s equity

The balance sheet of Ballcraft, Inc., reported the following:

Preferred stock, $6 par, 6%,

       5,000 shares authorized and issued                                            $30,000

Common Stock, $4.00 par value, 45,000 shares authorized;

       10,000 shares issued                                                                     40,000

Additional paid–in-capital – common                                                219,000

            Total paid—in capital                                                             289,000

Retained Earnings                                                                               90,000

Total Stockholder’s equity                                                                  379,000

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Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Ballcraft common stock was $31 per share.

Requirements:

1.      Is the preferred stock cumulative or non-cumulative? How can you tell?

2.      What is the total paid-in-capital of the company?

3.      What was the total market value of the common stock?

4.      Compute the book value per share of the common stock.