The balance sheet of Buzzcraft, Inc., reported the following:
Preferred stock, $7 par, 5%,
1,000 shares authorized and issued . . . . . . . . . . . . . . . . . . . . . . . $ 7,000
Common stock, $1.50 par value, 43,000 shares authorized;
11,000 shares issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,500
Paid-in capital in excess of parAc€??common . . . . . . . . . . . . . . . . . 224,000
Total paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,500
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Total stockholdersAc€?c equity . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 327,500
Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Buzzcraft common stock was $28 per share.
Requirements
1. Is the preferred stock cumulative or noncumulative? 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.