If a Company Has Both Common and Preferred Shares Outstanding

question 71

Multiple Choice

If a company has both common and preferred shares outstanding and wishes to calculate book value per share,

• A)net assets must be divided by the total number of both classes of stock.
• B)net assets,less the redemption value of the preferred stock,must be divided by the number of shares of common stock outstanding.
• C)stockholders' equity must be divided by the total number of both classes of stock.
• D)stockholders' equity,less the cost of treasury shares held,must be divided by the number of common shares outstanding.

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Definitions:

Expansion

The process of increasing in size, volume, quantity, or scope.

Bipolar Neurons

A type of neuron with two extensions (one axon and one dendrite), common in sensory systems like the retina of the eye.

Motor Neurons

Nerve cells forming part of the pathway along which impulses pass from the brain or spinal cord to a muscle or gland.

Sensory Neurons

Neurons responsible for converting external stimuli from the organism's environment into internal electrical impulses.