The previous year's balance sheet for Brown's Produce showed total common equity of $4,050,000 and 165,000 shares of stock outstanding. During the year, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at the end of the year, assuming no common stock was either issued or retired during 2016? Your answer should be between 16.42 and 37.15, rounded to 2 decimal places, with no special characters.
The previous year's balance sheet for Brown's Produce showed total common equity of $4,050,000 and 165,000 shares of stock outstanding. During the year, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at the end of the year, assuming no common stock was either issued or retired during 2016? Your answer should be between 16.42 and 37.15, rounded to 2 decimal places, with no special characters.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 4CP
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Introduction
Book value per share refers to the value of common equity as per the balance sheet of the company. A balance sheet has three heads, that is, assets, liabilities, and shareholders' equity. Shareholders' equity consists of common equity, net income, retained earnings, reserves and surplus, etc. Book value per share varies as per the earnings of the company and the percentage of earnings extended as dividends.
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