Sweet Company’s outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.     Dividends Declared & Paid Year 1 $ 2,000 Year 2 $ 6,000 Year 3 $ 32,000   The amount of dividends paid to preferred and common shareholders in year 3 is:   Multiple Choice   $15,000 preferred; $17,000 common.   $32,000 preferred; $0 common.   $7,000 preferred; $25,000 common.   $0 preferred; $32,000 common.   $5,000 preferred; $27,000 common

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.