Purpose: (L.O. 9) This exercise will illustrate the computation of book value per share when more than one class of stock is outstanding.
Book value per share of stock refers to the amount of stockholders' equity applicable to a share of stock.
Refer to the facts of Exercise 11-5 and the Solution to Exercise 11-5.
(a) Determine the book value per share of preferred stock.
(b) Determine the book value per share of common stock.