Asked by Rhiannon Butler on May 21, 2024
Verified
The stockholders' equity section of a company's year-end balance sheet follows:
The preferred stock has one year of dividends in arrears.Calculate the book value per common share.
Dividends in Arrears
Dividends on cumulative preferred stock that have not been paid in the period they were due, accumulating until paid by the corporation.
Book Value
Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.
Common Share
Common share represents equity ownership in a corporation, giving shareholders voting rights and a portion of the profits through dividends.
- Calculate the book value per common share.
Verified Answer
SW
Shauntisha WilliamsMay 28, 2024
Final Answer :
Book value per common share: $2,595,000/1,500,000 shares = $1.73 per common share
Learning Objectives
- Calculate the book value per common share.