Bonded Paper Company Has a Balance Sheet Which Lists $85

question 119

Multiple Choice

Bonded Paper Company has a balance sheet which lists $85 million in assets,$40 million in liabilities and $45 million in common shareholders' equity.It has 1,400,000 common shares outstanding.The replacement cost of the assets is $115 million.The market share price is $90.What is Bonded Paper's book value per share?

• A) $1.68
• B) $2.60
• C) $32.14
• D) $60.71
• E) none of these

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated entity.

Bank Statement

A monthly or quarterly document provided by a bank, detailing all transactions in a customer's account during the statement period.

Check Register

A record book or a spreadsheet where all written checks, cash transactions, and deposits are recorded.

Outstanding Deposit

A deposit that has been made to a bank account but not yet cleared or recognized in the bank's record system.