Goldsmith Corporation has provided the following data:
The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:
A) $8.32 per share
B) $4.66 per share
C) $14.34 per share
D) $0.27 per share

Question

Goldsmith Corporation has provided the following data:
 The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:
A) $8.32 per share 
B) $4.66 per share 
C) $14.34 per share 
D) $0.27 per share

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $749,000 ÷ 90,000 shares = $8.32 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $270,000 ÷ $3 per share =90,000 shares

Goldsmith Corporation Has Provided the Following Data