Unit 5 Assignment 4 – Dividend in Arrears

AC216Unit5Assignment4-DividendsinArrears.xlsx

Problem 4

Dividends in arrears
Use the following information for Portland Corporation to calcualte Equity data.
Portland Corporation
	Market price		$85			#		$
	Preferred stock	5%	Cumulative	?	Par Value	1000	Shares out	50,000
	Common stock			?	Par Value	4000	shares out	80,000
	Retained earnings							150,000
								280,000
1	Current Common Market Price:
2	What is the par value for the preferred stock?
	What is the par value for the common stock?				# shares
3	What is the book value of Preferred and Common if 2 years of dividends in arrears?
a.	Preferred stock	par value
		x		dividend %
		div per share		ann div per share
		x		shares
		1 yr div in arrears
		x		years
b.	Preferred stock equity				Preferred Book value per share
	net value
c.	Common stock book value per share
		Beginning Common Equity
		Retained earnings
		Total Common Equity
		Total Common Equity			Common Book value per share
		shares outstanding