if-a-company-has-no-preferred-stock-how-does-this-affect-the-calculation-of-book

Question

If a company has no preferred stock, how does this affect the calculation of book value per share of common stock?

Accepted Answer

The total equity is divided by the number of common shares outstanding.

Answer

The book value per share is calculated using market prices.

Answer

The book value per share is zero.

Answer

The calculation becomes irrelevant as there is no equity to consider.