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vitfil [10]
3 years ago
15

James Company has 1,400 shares of $100 par preferred stock, which were issued at par. It also has 29,000 shares of common stock

outstanding, and its total stockholders' equity equals $615,600. The book value per common share is:
Business
1 answer:
PSYCHO15rus [73]3 years ago
4 0

Answer:

$16.4

Explanation:

Given: Preferred stock= 1400 shares of $100

           Total share outstanding= 29000

           Total shareholder´s equity= $615600.

Now, calculating the book value per shares.

Formula; Book value per shares= \frac{(Total\ equity-preferred\ equity)}{Total\ shares\ outstanding}

Preferred stock= 1400 shares \times \$ 100= \$ 140000

∴ Preferred stock= $140000.

Book value per shares= \frac{(615600-140000)}{29000} = \frac{475600}{29000}

∴ Book value per share= $16.4

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Arada [10]

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