Symons Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
-The company's book value per share at the end of Year 2 is closest to:
A) $17.94 per share
B) $28.26 per share
C) $0.19 per share
D) $11.54 per share

Question

Symons Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
-The company's book value per share at the end of Year 2 is closest to:
A) $17.94 per share 
B) $28.26 per share 
C) $0.19 per share 
D) $11.54 per share

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $897,000 ÷ 50,000 shares = $17.94 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $250,000 ÷ $5 per share = 50,000 shares

Symons Corporation Has Provided the Following Financial Data