A well known company has total assets of Rs. 400 million, total debt of Rs. 160 million, and Rs. 40 million of 10 percent preferred stock outstanding. If the company has 10,00,000 shares of common…

To find the book value per share (BVPS) of the common stock, follow these steps:

1. Calculate Shareholders' Equity (SE): $$\text{SE}=\text{Total Assets}-\text{Total Debt}-\text{Preferred Stock}$$ $$\text{SE}=400-160-40=200\text{ million}$$

2. Determine Book Value per Share (BVPS): $$\text{BVPS}=\frac{\text{Shareholders’ Equity}}{\text{Number of Common Shares Outstanding}}$$ $$\text{BVPS}=\frac{200}{10,00,000}=20\text{ Rs.}$$

Final Answer: The book value per share is 20 Rs.