Answer:
book value = $35.64
so correct option is b. $35.64
Explanation:
given data
no of shares = 975 shares
preferred stock outstanding = $50
preferred stock = $64 per share
common stock outstanding = 11,000 shares
total value equity = $440,800
to find out
book value per common share
solution
we get here book value per common share that is express as
book value = ( Total value equity - Preferred Stock Book Value) ÷ Common Stock Outstanding ...................1
put here value we get
here Preferred Stock Book Value = no of shares × preferred stock outstanding
Preferred Stock Book Value = 975 × 50 = $48750
so book value will be
book value = [tex]\frac{440800-48750}{11000}[/tex]
book value = $35.64
so correct option is b. $35.64
