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:

Note Payable

A written promise to pay a specific sum of money on a certain date, or on demand, to the holder of the note, which can be short-term or long-term.