Financial statements for Larned Company appear below: Dividends during Year 2 totaled $263 thousand, of which $12 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $160.

-Larned Company's book value per share at the end of Year 2 was closest to:
A)$16.11
B)$63.89
C)$70.56
D)$10.00

Question

Financial statements for Larned Company appear below:   Dividends during Year 2 totaled $263 thousand, of which $12 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $160.

-Larned Company's book value per share at the end of Year 2 was closest to:
A)$16.11 
B)$63.89 
C)$70.56 
D)$10.00

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity
F1F1F1S1F1F1F10 Number of common shares outstanding = $1,150 F1F1F1S1F1F1F10 18 shares* = $63.89 per share
*Number of common shares outstanding = Common stock F1F1F1S1F1F1F10 Par value
= $180 F1F1F1S1F1F1F10 $10 per share = 18 shares

Financial Statements for Larned Company Appear Below: Dividends