Introduction:
Common Stock refers to securities which give its holders a share in the ownership of a corporation. Common stockholders have voting rights and they can elect the board of directors of a corporation.
Requirement 1:
To Calculate:
Current Market Value of Common Stock
Requirement 2:
To Calculate:
Par Value of
Requirement 3:
To Calculate:
Book Value per share of Common Stock if no dividends are in arrears
Requirement 4:
To Calculate:
Book Value per share of Common Stock if two years preferred dividends are in arrears
Requirement 5:
To Calculate:
Total amount of dividend to be paid to the Preferred and Common shareholders and Dividend per share for Common Stock
Requirement 6:
To Determine:
Reasons for common stock not being always a good estimate of its market value
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