*E12-25 At December 31, Missouri Corporation has total stockholders’ equity of

Price: $1.99


At December 31, Missouri Corporation has total stockholders’ equity of $3,000,000.
Included in this total are preferred stock $500,000 and paid-in capital in excess of par value—
preferred stock $50,000. There are 10,000 shares of $50 par value 10% cumulative preferred
stock outstanding. At year-end, 200,000 shares of common stock are outstanding.

Instructions
Compute the book value per share of common stock, under each of the following assumptions.
(a) There are no preferred dividends in arrears, and the preferred stock does not have a
call price.
(b) Preferred dividends are one year in arrears, and the preferred stock has a call price of $60 per
share.