Recher Corporation's Common Stock Has a Par Value of $3

question 272

Multiple Choice

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.The company's book value per share at the end of the year is closest to:

• A) $11.37 per share
• B) $7.37 per share
• C) $0.19 per share
• D) $16.81 per share

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Definitions:

Calories

A unit of energy usually used to measure the energy content in food and beverages.

Neurons

The basic working units of the brain, specialized cells that transmit information through electrical and chemical signals.

Visualization

The use of imagery to see goals clearly and envision engaging successfully in new, positive behavior.

Thoughts

Mental processes of considering, reasoning, or recalling.