Red Stapler Company Has a Balance Sheet Which Lists $85

question 20

Multiple Choice

Red Stapler Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity. It has 1,400,000 common shares outstanding. The replacement cost of the assets is $115 million. The market share price is $90. What is Red Stapler's book value per share?

• A) $1.68
• B) $2.60
• C) $32.14
• D) $60.71
• E) None of the options are correct.

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Definitions:

Ile/o

Refers to the ileum, the third and final part of the small intestine in the digestive system.

Proct/o

A prefix in medical terminology that refers to the anus, rectum, or lower part of the gastrointestinal tract.

Dysphagia

Difficulty or discomfort in swallowing, which may be due to an obstruction or a disorder in the swallowing mechanism.

Hemat

A prefix in medical terminology that relates to blood.