Ariel Investigations has total paid-in capital of $90,000 and retained earnings of $60,000.It has 200 shares of $100 par value common stock outstanding.The book value of each share of common stock is:

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing the total equity by the number of shares outstanding. Total equity is the sum of paid-in capital and retained earnings, which is $90,000 + $60,000 = $150,000. With 200 shares outstanding, the book value per share is $150,000 / 200 = $750.

Ariel Investigations Has Total Paid-In Capital of $90,000 and Retained