Buck Company has $200,000 of preferred stock redemption value and $900,000 of dividends in arrears. If 100,000 preferred shares are 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 = (Redemption value + Dividends in arrears) / Number of shares outstanding= ($200,000 + $900,000) / 100,000= $11.00 per share

Buck Company Has $200,000 of Preferred Stock Redemption Value and $900,000