The Following Data Are Provided: Additional Information:On May 1

question 128

Multiple Choice

The following data are provided: Additional information:On May 1, 2015, 5,000 shares of common stock were issued. The preferred dividends were not declared during 2015. The market price of the common stock was $50 at December 31, 2015.The book value per share of common stock at 12/31/15 is calculated as

• A) 455 ÷ 14.
• B) 380 ÷ 14.
• C) 220 ÷ 14.
• D) 460 ÷ 14.

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Definitions:

Price

The price to be paid to secure a good, service, or asset.

Leftover Income

Leftover Income refers to the amount of income remaining after all expenses and taxes have been paid.

Budget Constraint

An economic model that represents all the combinations of goods and services a consumer can afford given their income and the prices of goods.

Bundle

A collection of products or services sold as a single package deal, often at a discounted price.