Answer:
Book value per share $ 13.37
Explanation:
We have to solve for the equity of the firm and subtract the preferred stock. the remainder wil lbe the book value of all comon stock.
Assets 3,400,000
Liab (1,900,000)
preferred (430,000)
common equity 1,070,000
Now, we divide by the outstanding shares:
outstanding shares 80,000
book value per share: 13.375
Answer:
Book Value per share=$13.375
Explanation:
Given Data:
Total assets=$3.4 million=$3,400,000
Total short- and long-term debt=$1.9 million=$1,900,000
Preferred Stock=$430,000
Common shares outstanding=80,000 shares
Required:
Book value per share =?
Solution:
First we will calculate the book value:
Book Value= Total assets-Total Debts-Preferred Stock
Book Value= $3,400,000-$1,900,000-$430,000
Book Value= $1,070,000
Book Value per share=[tex]\frac{Book\ Value}{Common\ Stock\ Shares}[/tex]
Book Value per share=[tex]\frac{\$1,070,000}{80,000}[/tex]
Book Value per share=$13.375
