The stockholders’ equity section of Axel Company’s balance sheet follows. The preferred stock’s call price is $30. Determine the book value per share of the common stock.
|
Preferred stock—5% cumulative, $10 par value, 10,000 shares authorized, issued and outstanding |
$100,000 |
|
Common stock—$5 par value, 100,000 shares authorized, 75,000 shares issued and outstanding . |
375,000 |
|
Retained earnings |
445,000 |
|
Total stockholders’ equity |
$920,000 |