When a Company Has Both Common Stock and Preferred Stock

question 163

Multiple Choice

When a company has both common stock and preferred stock, the book value per share of common stock is calculated by:

• A)dividing the amount in the common stock account by the number of shares of common stock outstanding.
• B)dividing the amount in the common stock account by the sum of the number of shares of common stock and preferred stock outstanding.
• C)dividing total stockholders' equity less preferred equity by the number of shares of common stock outstanding.
• D)dividing total stockholders' equity by the number of shares of common stock outstanding.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates between the desires of the id, the moral of the superego, and the realities of the external world.

Socializing Agent

An individual, group, or institution that plays a role in integrating individuals into the norms, values, and cultures of their society.

Middle Childhood

Middle childhood is a stage of human development that typically ranges from ages 6 to 12 years, characterized by significant growth in cognitive, social, and emotional domains.

Adolescence

is the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.