Preferred book value is calculated by:

Question

Quizplus · Accepted Answer

Preferred book value represents the value of a company's preferred stock on its balance sheet. It is calculated by dividing the total preferred equity plus dividends in arrears by the number of preferred shares outstanding. Therefore, option B is the correct answer. Option A is incorrect because it does not include dividends in arrears, which is a crucial component of preferred equity. Option C is incorrect because it includes common shares, which is not relevant to calculating the preferred book value. Option D is incorrect because it only considers common shares, not preferred shares.

Preferred Book Value Is Calculated By