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    Calculate the book value of a preferred share, and a common share

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    The preferred stock has a call price of $103 per share plus dividends in arrears. Only one year of dividends are in arrears. Calculate the book value per (1) preferred share, and (2) common share.

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    Book Value of preferred share = (Call Price of preferred stock + Dividends in arrears)/Total number of preferred shares
    Number of preferred shares = 5,000
    Call ...

    Solution Summary

    This posting helps calculate book value.