Question

A company has 825 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $63 per share. It also has 17,000 shares of common stock outstanding, and the total value of its stockholders' equity is $626,575. The company's book value per common share equals:

Answer 1

Book Value Per Common Share = $33.80

Step-by-step explanation:

Book Value Per Common Share = Stockholders' equity - Shares * Call Price per shares) / Shares of common stock outstanding

= ($626,575 - 825*63) / 17000

= ($626,575 - $51,975) / 17,000

= $574,600 / 17,000

= $33.80