Question - The balance sheet of Ballcraft, Inc., reported the following:

Preferred stock, $6 par, 6% 5,000 shares authorized and issued - $30,000

Common stock, $4.00 par value, 45,000 shares authorized; 10,000 shares issued - $40,000

Additional paid-in-capital-common - $219,000

Total paid-in-capital - $289,000

Retained earnings - $90,000

Total stockholder's equity - $379,000

Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Ballcraft common stock was $31 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.