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at 585 per shvate, Problem 13-5A Computation of book values and dividend allocations Raphael Corporations common stock is cu

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Raphael Corporation
Answer 1
Market price per share of common stock is given in the 1st line of question. It is $ 85 per share.
Market value is: Note
Number of shares          4,000.00 A
Market price per share                85.00 B
Market value is: $ 340,000.00 C=A*B
Answer 2
Total value of Preferred Stock outstanding        50,000.00 D
Number of shares          1,000.00 E
Par Value per Preferred share                50.00 F=D/E
Total value of Common Stock outstanding        80,000.00 G
Number of shares          4,000.00 H
Par Value per Common share                20.00 I=G/H
Answer 3
Total value of Common Stock outstanding        80,000.00 J
Add: Retained Earnings      150,000.00 K
Total book Value     230,000.00 L=J+K
Number of shares          4,000.00 M
Book Value per Common share                  57.5 N=L/M
Answer 4
Total value of Preferred Stock outstanding        50,000.00 O
Dividend rate 5% P
Annual Dividend          2,500.00 Q=O*P
Dividend for 2 years          5,000.00 R=Q*2
Total book Value as calculated in answer 3      230,000.00 S
Number of shares          4,000.00 T
Book Value per Common share                  57.5 U=S/T
Note: Even if there is arrear Preference dividend book value is still same because arrear dividends are not liability to the company as they are not declared yet.
Answer 5
Total dividend declared        11,500.00 V
Less: Arrear Preference dividend calculated in answer 4          5,000.00 See R above
Less: Preference dividend for current year          2,500.00 W
Dividend for Common stockholders          4,000.00 X=V-R-W
Number of shares          4,000.00 Y
Dividend per Common share                  1.00 Z=X/Y
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