Book value per share of common stock

Bronze Tint Trust has the following stockholders’ equity:

Paid-in capital:

Preferred stock, 5%, $10 par, 6,000 shares authorized, 4,500 shares issued

$ 45,000

Common stock, $0.20 par, 1,200,000 shares authorized and issued

240,000

Paid-in capital in excess of par—common

400,000

Total paid-in capital

$ 685,000

Retained earnings

255,000

Total stockholders’ equity

$ 940,000

Bronze Tint has not declared preferred dividends for five years (including the current year).

Requirement

  1. Compute the book value per share of Bronze Tint’s preferred and common stock.