Question

Razz Corporation’s common stock is currently selling on a stockexchange at $185 per share, and its current balance sheet shows thefollowing stockholders’ equity section. Preferred stock—5%cumulative, $___ par value, 1,000 shares authorized, issued, andoutstanding $ 50,000 Common stock—$___ par value, 4,000 sharesauthorized, issued, and outstanding 160,000 Retained earnings370,000 ________________________________________________________________________________ Total stockholders' equity$ 580,000________________________________________________________________________________________________________________________________________________________________________________________________________ 1. What is the currentmarket value (price) of this corporation's common stock? Marketpricer…….. per share???

2. What are the par values of the corporation's preferred stockand its common stock? Corporation’s preferred stock: Par value???Corporation’s common stock: Par value??

3. If no dividends are in arrears, complete the below table tocalculate the book values per share of the preferred stock and thecommon stock? Book value per preferred share??? Book value percommon share

4. If two years' preferred dividends are in arrears, completethe below tables to calculate the book values per share of thepreferred stock and the common stock? Book value per preferredshare??? Book value per common share

5. If two years’ preferred dividends are in arrears and thepreferred stock is callable at $60 per share, what are the bookvalues per share of the preferred stock and the common stock? Bookvalue per preferred share??? Book value per common share

6.1 If two years’ preferred dividends are in arrears and theboard of directors declares cash dividends of $16,500, what totalamount will be paid to the preferred and to the commonshareholders? Total amount paid to the preferred shareholders?Total amount paid to the common shareholders? What is the amount ofdividends per share for the common stock?