A company has 825 shares of $50 par value preferred stock outstanding, and the call price of its preferred

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:

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  1. Book Value Per Common Share = $33.80

    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

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