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:

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:

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