A. Company A has total stockholders’ equity at year-end of $500,000 and has 10,000 shares of…

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A. Company A has total stockholders’ equity at year-end of $500,000 and has 10,000 shares of stock.

B. Company B has total stockholders’ equity at year-end of $500,000 and has 10,000 shares of

stock. The company also has 50,000 shares of preferred stock, which has a $1 par value and a

liquidation value of $3 per share.

Required

Calculate the book value per share for Company A and Company B.

 

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