Cloud CoProvided the Following Information from Its 2016 Financial Statements:
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question 109

Essay

Cloud Co.provided the following information from its 2016 financial statements:
​ $\begin{array}{lr}\text { Total Assets } & \$ 655,000 \\\text { Total Liabilities } & 225,000\end{array}$
In addition, the stockholders' equity section of the balance sheet showed:
Preferred stock, $10 \%, \$ 2$ par value, 10,000 authorized, 8,000 issued and outstanding, $\$ 5$ liquidation value $\quad \$ 16,000$
Common stock, $4 par value, 20,000 shares authorized, 10,000 issued and outstanding $\quad 40,000$

The common stock had a year-end market price of $\$ 24$ .
A) Calculate the book value per common share at year-end.
B) Indicate the usefulness of this ratio for Cloud Co.. ​

• A) Calculate the book value per common share at year-end.
• B) Indicate the usefulness of this ratio for Cloud Co.. ​

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Definitions:

Expropriation

The act of a government taking private property for public use, with compensation provided to the owner.

Confiscation

The act of seizing property by authority, often without compensation, for legal or government use.

Expropriation

The act by a government of taking privately owned property to public use, typically with compensation to the owners.

Payment Of Compensation

The process of providing financial remuneration to an individual or entity for loss, damage, or injury.