MBP Company has 10,000 shares of $10 par preferred stock,which were issued at par.It also has 250,000 shares of common stock outstanding,and its total stockholders' equity equals $4,000,000.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 value from the total stockholders' equity and then dividing by the number of common shares outstanding. The value of the preferred stock is 10,000 shares * $10 = $100,000. Therefore, the equity available to common shareholders is $4,000,000 - $100,000 = $3,900,000. Dividing this by the 250,000 common shares outstanding gives a book value per common share of $15.60.

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