Settles Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's book value per share at the end of the year is closest to:
A) $11.37 per share
B) $7.37 per share
C) $0.19 per share
D) $16.81 per share

Question

Settles Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's book value per share at the end of the year is closest to:
A) $11.37 per share 
B) $7.37 per share 
C) $0.19 per share 
D) $16.81 per share

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $1,023,000 ÷ 90,000 shares = $11.37 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $270,000 ÷ $3 per share =90,000 shares

Settles Corporation Has Provided the Following Financial Data