The stockholders equity section of Montel Companys balance sheet follows. The preferred stocks call price is $40.

Question:

The stockholders’ equity section of Montel Company’s follows. The preferred stock’s call price is $40. Determine the book value per share of the common stock.
Preferred stock—5% cumulative, $10 par value,
20,000 shares authorized, issued, and outstanding . . . . . . . . . $ 200,000
Common stock—$5 par value, 200,000 shares
authorized, 150,000 shares issued and outstanding . . . . . . . . . 750,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,850,000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...