Chapter 19, Problem 2PS

Summary Introduction

Adequate information:

• 1000 shares of 8% cumulative preferred stock outstanding with Par Value of $ 100 and liquidation Value of $ 110.
• 20000 shares of common stock outstanding with par value of $20
• Retained earnings at beginning of year − $5,000,000
• Net Income for the Year - $70,000
• No dividend declared

To Compute:

Book Value per share of Meyer's common stock

Introduction:

Book value per share is the unit value of common stock of a company based on the its equity available to common shareholders. Book Value is company's assets less its liabilities and intangible assets.