00:02
Hello, let's find answer to the first question.
00:08
Let's calculate the total book value of myers common stock.
00:15
So let's calculate the book value.
00:19
Book value of this equity.
00:23
So we need to add the book value of equity.
00:30
And i think we can find this.
00:36
We know that there are 20 ,000 shares of common stock outstanding.
00:49
So we multiply, or let me, i will just write here.
00:56
So we have 20 ,000 shares and we multiply this by the pair value, which is 20 dollars and we have 400 ,000 so this is the first part also we need to add retained earnings beginning balance i think it should be given yes i returned earnings beginning balance is 5 million it's already given i just use this information then i need to add net income.
01:49
Net income is also given it's 70 ,000.
01:57
What else do we need? we need to add preferred dividends in areas.
02:05
And this we need to calculate.
02:11
Actually we should subtract this, yeah, i'm sorry.
02:14
We subtract preferred dividends in areas.
02:18
And now let's calculate this first.
02:23
So we have the value of preferred stock.
02:35
We can find this.
02:37
There are 1 ,000 shares of 9 % cumulative preferred stock outstanding and we multiply this by per value, which is 100.
02:56
If we multiply this, we have $100 ,000.
03:11
This is amount of preferred stock.
03:16
And now we need to multiply this by 8%, because the cumulative preferred stock has 8%.
03:29
Multiply by 8%.
03:31
And this will be equal to 8 ,000.
03:42
So now we have an amount of preferred dividend.
03:49
It's 8 % of 1 ,000, which is 8 ,000 and we subtract this amount...