If dividends in arrears are $1,500,000 preferred stock redemption value of 60,000, and 2,400 preferred shares outstanding, what is the book value per share of preferred stock? (Round the final answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The book value per share of preferred stock is calculated as follows:Book value per share = (Dividends in arrears + Preferred stock redemption value) / Number of preferred shares outstanding= ($1,500,000 + $60,000) / 2,400= $1,560,000 / 2,400= $650 per share= $25.00 per share (rounded to the nearest cent)

If Dividends in Arrears Are $1,500,000 Preferred Stock Redemption Value