Please refer to the equity section of the balance sheet, below:
$\begin{array}{|l|c|}
\hline \text { Common stock, } \$ 0.01 \text { par } & \$ 500 \
\hline 1,000,000 \text { shares authorized, } 50,000 \text { shares outstanding } &\
\hline \text { Paid-in capital in excess of par } & 399,500 \
\hline \text { Retained earnings } & 150,000 \
\hline \text { Total stockholder's' equity } & \$ 550,000 \
\hline
\end{array}$
Please calculate the book value per share of common stock.

Question

Please refer to the equity section of the balance sheet, below:
$\begin{array}{|l|c|}
\hline \text { Common stock, } \$ 0.01 \text { par } & \$ 500 \
\hline 1,000,000 \text { shares authorized, } 50,000 \text { shares outstanding } &\
\hline \text { Paid-in capital in excess of par } & 399,500  \
\hline \text { Retained earnings } & 150,000 \
\hline \text { Total stockholder's' equity } & \$ 550,000 \
\hline
\end{array}$
Please calculate the book value per share of common stock.

Quizplus · Accepted Answer

The book value per share is calculated by dividing total stockholders' equity by the number of shares outstanding: $550,000 / 50,000 shares = $11.00 per share.

Please Refer to the Equity Section of the Balance Sheet