- 1). Identify the preferred stock's call price plus any dividends in arrears. The call price is the price the corporation must pay investors for the preferred stock if it decides the repurchase it. You may do this by going to Yahoo! Finance and typing the stock's ticker symbol in the search box. This information is found on the company's balance sheet. The balance sheet may be obtained through your broker or from the corporation's website. The book value of a share of preferred stock is it's call price plus any dividends in arrears.
- 2). Do the math. If a 5 percent cumulative preferred stock having a par value of $100 a share has a call price of $110 a share and the corporation owes two years of dividends, the book value of the preferred stock is $120 per share. For example: $100 par value + $10 premium + $10 for two years of dividends in arrears = $120.
- 3). Calculate the total book value of a corporation's preferred stock by multiplying the book value of each share by the total number of shares outstanding. For example, if the book value of the company's preferred stock is $120 per share and there are 1 million outstanding shares, the total book value of the company's preferred shares is $120 million.
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