Question

James Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock outstanding, and its total stockholders' equity equals $500,000. The book value per common share is:

Answer 1

The book value per common share is: $19.6

Step-by-step explanation:

1,000 × 10 = 10,000

500,000 - 10,000 = 490,000

490,000 ÷ 25,000 = 19.6