Assume the following independent situations:
1. Company A has total stockholders' equity at yearend of $600,000 and has 10,000 shares of stock.
2. Company B has total stockholders' equity at yearend of $600,000 and has 10,000 shares of stock. The company
also has 60,000 shares of preferred stock, which has a $1 par value and a liquidation value of $3 per share.
Required:
Calculate the book value per share for Company A and Company B.

Question

Assume the following independent situations:
1. Company A has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock.
2. Company B has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock. The company
also has 60,000 shares of preferred stock, which has a $1 par value and a liquidation value of $3 per share.
Required:
Calculate the book value per share for Company A and Company B.

Quizplus · Accepted Answer

The Answer of Assume the following independent situations:
1. Company A has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock.
2. Company B has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock. The company
also has 60,000 shares of preferred stock, which has a $1 par value and a liquidation value of $3 per share.
Required:
Calculate the book value per share for Company A and Company B.

Assume the Following Independent Situations