Goldsmith Corporation has provided the following data: The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:

Question

Goldsmith Corporation has provided the following data:  The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $749,000 ÷ 90,000 shares = $8.32 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $270,000 ÷ $3 per share =90,000 shares

Goldsmith Corporation Has Provided the Following Data: the Company's