Question: If a company has both preferred and common stock the......?

14. If a company has both preferred and common stock, the
a. computation of book value is the same as when there is only one
class of stock.
b. equity of the preferred shareholders must be deducted in
computing book value per share.
c. preferred shareholders ordinarily have a right to amounts in the
Paid-In Capital in excess of Par Value account.
d. par value of preferred stock is subtracted in computing book
value per share if call prices are specified for the preferred
shares.

Answer:

B.