Book value per share of common stock The balance sheet of Mark Todd Wireless, Inc., reported the following:
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Preferred stock, 9%, $20 par, 1,300 shares authorized, issued |
|
|
and outstanding |
$26,000 |
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Common stock, no par value, 12,000 shares authorized, |
|
|
5,300 shares issued |
200,000 |
|
Retained earnings |
50,000 |
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Total stockholders’ equity |
$276,000 |
Assume that Todd has paid preferred dividends for the current year and all prior years (no dividends in arrears).
Requirement
1. Compute the book value per share of the common stock.