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:

Correlation

The degree to which events or characteristics vary along with each other.

Magnitude

The size, extent, or importance of something.

Correlation Coefficient

A numerical indicator that shows the degree to which multiple variables co-vary.

Negative Life Events

Significant adverse events or situations that can lead to stress and have potentially lasting impacts on an individual's mental health.