Common Stock

Question 1

Book value of common stock

Answer 1

Add up all the equity items (preferred stock at book value) - preferred stock (at settlement value) - Preferred dividends then / by number of common shares outstanding

Question 2

Quasi-reorganization

Answer 2

alternative to bankruptcy in some cases. Allows for a fresh start and at new more conservative asset values.

Question 3

Advice for this section

Answer 3

In the question be careful when reading about total value and or total shares outstanding.