Book value per share of preferred stock is computed as total stockholders' equity less the amount assigned to common stock plus any dividends in arrears divided by the number of shares of preferred stock outstanding.

Question

Quizplus · Accepted Answer

Book value per share of preferred stock is calculated by dividing the total equity assigned to preferred stock, including any dividends in arrears, by the number of preferred shares outstanding, not by subtracting common stock equity.

Book Value Per Share of Preferred Stock Is Computed as Total