James Company has 1,000 shares of $10 par preferred stock,which were issued at par.It also has 25,000 shares of common stock outstanding,and its total stockholders' equity equals $500,000.The book value per common share is:

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The book value per common share is calculated by subtracting the preferred stock's equity from the total stockholders' equity and then dividing by the number of common shares outstanding. The preferred stock's equity is 1,000 shares * $10 = $10,000. Thus, the equity available to common shareholders is $500,000 - $10,000 = $490,000. Dividing this by the 25,000 common shares outstanding gives a book value per common share of $19.60.

James Company Has 1,000 Shares of $10 Par Preferred Stock,which