Excerpts from Goodrow Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $20 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $5.34 per share.
-The book value per share at the end of Year 2 is closest to:
A)$0.30
B)$3.05
C)$6.10
D)$3.55

Question

Excerpts from Goodrow Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $20 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $5.34 per share.
-The book value per share at the end of Year 2 is closest to:
A)$0.30 
B)$3.05 
C)$6.10 
D)$3.55

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity
F1F1F1S1F1F1F10 Number of common shares outstanding = $610 F1F1F1S1F1F1F10 200 shares* = $3.05 per share
*Number of common shares outstanding = Common stock F1F1F1S1F1F1F10 Par value
= $400 F1F1F1S1F1F1F10 $2 per share = 200 shares

Excerpts from Goodrow Corporation's Most Recent Balance Sheet and Income