(a) The book value per share of preferred stock is $105—the call price per share.
Explanation: The preferred stock equity per share consists of the call price of the stock plus any dividends in arrears. If the preferred stock does not have a call price, the book value of one share of preferred is equal to the preferred's par value plus any dividends in arrears.
TIP: Notice that none of the paid-in capital in excess of par value arising from the issuance of preferred stock at a price above par ($120,000) is directly allocated to preferred stock in the book value per share of preferred stock computation.
TIP: There is no mention of any dividends in arrears for this entity at the specified balance sheet date.
TIP: If only one class of stock is outstanding, the book value of common is computed simply by dividing total stockholders' equity by the total number of shares outstanding.