Bernard Company provided the following information from its financial records:
$\begin{array}{lllr}
\text { Net income } & \$ 250,000 & \text { Total stockholders' equity } & \$ 1,000,000 \
\text { Common dividends } & \$ 15,000& \begin{array}{l}
\text { Common shares outstanding, } \
12 / 31
\end{array} & 150,000 \
\text { Preferred rights } & \$ 175,000 & &
\end{array}$
What is the company's book value per share?

Question

Quizplus · Accepted Answer

The book value per share is calculated as (Total stockholders' equity - Preferred rights) / Common shares outstanding. So, ($1,000,000 - $175,000) / 150,000 = $5.50.

Bernard Company Provided the Following Information from Its Financial Records