Question

Ace, Inc.'s stockholders' equity applicable to common shares is $60,000. The number of common shares outstanding is 1,000 and the number of preferred shares outstanding is 500. The current market value for common stock is $80 per share and preferred stock is $95 per share. The book value per common share is________ $ .

Answer 1

the book value per common share is $60.

Step-by-step explanation:

Book Value Per Share = Equity Applicable / Number of Shares Outstanding

= $60,000/ 1,000

= $60

Thus the book value per common share is $60.