A. Yorkshire Corporation has 9,000 shares of $10 par value common stock and 5,000 shares of $50 par value, 10 percent cumulative preferred stock outstanding. All shares were issued at par value. In addition, retained earnings total $90,000. If the preferred stock is callable at $54 per share, and one year's dividends are in arrears, compute book value per share of preferred stock
b. Assume the same facts as in a above. Calculate book value per share of common stock.
c. Assume the same facts as in a above and that Yorkshire Corporation declares a 5-for-1 stock split on its common stock. After the split, total par value of common stock equals what amount?
d. Assume the same facts as in a above and that Yorkshire Corporation declares a 12 percent stock dividend on its preferred stock. If the market value on the declaration date was $70 per share, for what amount will Preferred Stock Distributable be credited?
a. $59 per share ($50 x 0.10 = $5 + $54)
b. $15 per share [(9,000 x $10 ) + (5,000 x $50 ) + $90,000 = $430,000 - (5,000 x $59 ) = $135,000 รท 9,000]
c. $90,000 (same as before, now 45,000 shares @ $2)
d. $30,000 (5,000 x 0.12 = 600 x $50)
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