When the Corporation Has Both Preferred and Common Stock,the Steps

question 115

Multiple Choice

When the corporation has both preferred and common stock,the steps to compute book value for common stock would be:

• A)compute common shares divided by number of shares outstanding.
• B)compute preferred stock book value first; the remainder is assigned to common stock.
• C)divide total stockholders' equity by total shares outstanding.
• D)None of these answers are correct.