Data from Saldivar Corporation's most recent balance sheet appear below:
A total of 150,000 shares of common stock and 40,000 shares of preferred stock were outstanding at the end of the year.The book value per share is closest to:
A)$2.73
B)$5.00
C)$6.53
D)$7.87

Question

Data from Saldivar Corporation's most recent balance sheet appear below: 
 A total of 150,000 shares of common stock and 40,000 shares of preferred stock were outstanding at the end of the year.The book value per share is closest to:
A)$2.73 
B)$5.00 
C)$6.53 
D)$7.87

Quizplus · Accepted Answer

The book value per share is calculated by dividing the total stockholders' equity by the total number of common shares outstanding. Here, the total stockholders' equity is $1,180,000, and there are 150,000 common shares outstanding. Thus, the book value per share is $1,180,000 / 150,000 = $7.87.

Data from Saldivar Corporation's Most Recent Balance Sheet Appear Below