
1. Par Value of Equity and Preferred Shares.
Concept Introduction:
Preferred Shares and Common Shares:
Preferred Shares are Shares which have first preference over common shareholders, with respect to dividends and assets, in the case of wind up.
Requirement 1
Par value of Preferred Shares and Common Shares
2. Book Value of Common Share.
Concept Introduction:
Book Value of Common Shares:
Book Value of Common Shares, is the total of Shareholders Equity Excluding Preference Shares, Divided by total number of common shares.
Requirement 2
Book Value of Common Shares
3. Book Value per share after considering Preferred dividends in arrears.
Concept Introduction:
Book Value of Common Shares:
Book Value of Common Shares, is the total of Shareholders Equity Excluding Preference Shares, Divided by total number of common shares.
Requirement 3
Book Value per Share after considering Dividends in arrears.
4. Preferred Stock Dividend
Concept Introduction:
Preferred Stock Dividend
Preferred Stock dividend has been pre agreed upon. At times if preferred shares are cumulative, dividends in arrears will be accumulated and paid out before common shareholders when dividends are declared. In case of non cumulative shares, Dividends in arrears will not be carried forward, but if dividends are declared first preference will be given to Preference shareholders.
Requirement 4

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Chapter 13 Solutions
Fundamental Accounting Principles
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