The Bernard Company provided the following information from its financial records: $\begin{array}{lrlr}
\text {Net income } & \$ 290,000 & \text { Total stockholders equity } & \$ 890,000 \
\text { Common dividends } & \$ 19,000 & \text { Common shares outstanding, } & 129,000 \
& & 12 / 31 &\
\text { Preferred rights } &\$ 240,000
\end{array}$ What is the company's book value per share?
A) $2.25
B) $6.90
C) $5.04
D) $2.10

Question

The Bernard Company provided the following information from its financial records: $\begin{array}{lrlr}
\text {Net income } & \$ 290,000 & \text { Total stockholders equity } & \$ 890,000 \
\text { Common dividends } & \$ 19,000 & \text { Common shares outstanding, } & 129,000 \
& & 12 / 31 &\
\text { Preferred rights } &\$ 240,000 
\end{array}$  What is the company's book value per share?
A) $2.25
B) $6.90
C) $5.04
D) $2.10

Quizplus · Accepted Answer

The book value per share is calculated as total equity divided by the number of outstanding shares. 
Total equity = Total assets - Total liabilities 
= $6,396,000 - $1,350,000 - $636,000 
= $4,410,000 
Number of outstanding shares = 875,000 
Book value per share = $4,410,000 / 875,000 = $5.04 
Therefore, the correct answer is C.

The Bernard Company Provided the Following Information from Its Financial