Seville Corporation has net assets of $2,072,000 and paid-in capital of $700,000.The only stock issue consists of 74,000 outstanding shares of common stock.From this information,it can be deduced that the company has:

Question

Quizplus · Accepted Answer

To calculate book value per share, we need to divide the total stockholders' equity by the number of outstanding shares.

Total stockholders' equity = Net assets + Paid-in capital 
= $2,072,000 + $700,000 
= $2,772,000

Book value per share = Total stockholders' equity / Number of outstanding shares 
= $2,772,000 / 74,000 
= $37.46

Therefore, the company has a book value of $37.46 per share of common stock, which is equivalent to $28 per share of common stock after rounding to the nearest dollar. Option D is the best choice.

Seville Corporation Has Net Assets of $2,072,000 and Paid-In Capital