Determining book value per share of common stock


Response to the following problem:

The stockholders' equity section of Axel Company's balance sheet follows. The preferred stock's call price is $30. Determine the book value per share of the common stock.

Preferred stock-5% cumulative, $10 par value,

10,000 shares authorized, issued and outstanding . . . . . . . . . . $100,000

Common stock-$5 par value, 100,000 shares

authorized, 75,000 shares issued and outstanding . . . . . . . . . . 375,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445,000

Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $920,000

 

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Financial Accounting: Determining book value per share of common stock
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