Hunter Manufacturing Inc

question 56

Multiple Choice

Hunter Manufacturing Inc.'s December 31, 2009 balance sheet showed total common equity of $2,050,000 and 100,000 shares of stock outstanding.During 2010, Hunter had $250,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/10, assuming that Hunter neither issued nor retired any common stock during 2010?

• A)$20.90
• B)$22.00
• C)$23.10
• D)$24.26
• E)$25.47

---

Definitions:

Prepaid Expense

Prepayments for products or services that are to be delivered at a later date.

Magazine Subscription

The payment for a pre-determined period of receiving periodic issues of a magazine or similar publication.

Paid

An amount of money that has been given or transferred in exchange for goods, services, or to settle a debt.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, often recognized at the end of an accounting period.