If a Company Has Common Stock and Preferred Stock Outstanding

question 74

Multiple Choice

If a company has common stock and preferred stock outstanding, book value per share is calculated as:

• A)total paid-in capital divided by the number of common shares of stock outstanding.
• B)total paid-in capital divided by the number of common shares issued.
• C)total stockholders' equity minus preferred equity divided by the number of common shares outstanding.
• D)total stockholders' equity minus preferred equity divided by the number of common shares issued.

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Definitions:

Expense Accounts

Expense accounts are used in accounting to track money spent or costs incurred in a company's operations.

Retained Earnings

Earnings not paid out as dividends but instead reinvested in the company or used to pay off debt.

Total Assets

The combined value of everything a company owns, both current and non-current, as reported in the balance sheet.

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.