Common Stock, Treasury Stock, and Preferred Stock information is presented in equity section

May 5th, 2015
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Undestand how common stock, treasury stock, and preferred stock information is presented on the balance sheet in the equity section and how total equity would be computed?

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Question : Understand how common stock, Treasury stock and preferred stock information is presented on the balance sheet in the equity section and how total equity would be computed?Answer: Company has both preferred and common stock outstanding, the computation of book value per share of common stock requires two steps.. First, the amount assigned to preferred stock and any dividends in arrears are deducted from total stockholders equity . Second, the remaining amount of stockholders equity is divided by the number of common shares outstanding to determine book value per commo

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