A. The book value of common stock is calculated as the book value of common equity (which includes APIC and retained earnings) divided by the number of common shares outstanding. There are 1,000,000 shares outstanding ($5,000,000 total par value and a par value of $5 per share). The book value of the common equity is $23,000,000 and this gives a book value per share of $23.

B. This answer does not include retained earnings in the book value of the common equity. See the correct answer for a complete explanation.

C. This answer does not include APIC and retained earnings in the book value of the common equity. See the correct answer for a complete explanation.

D. This answer incorrectly includes the par value of the preferred stock in the calculation of the book value of the common stock. See the correct answer for a complete explanation.