Acme Widget,Inc

question 8

Multiple Choice

Acme Widget,Inc.has 1,000 shareholders who own a total of one million shares of its common stock.The company earned $10 million after taxes and paid out $4 million in dividends.The company has assets of $125 million and liabilities of $25 million.What is the book value per share?

• A)$4
• B)$125
• C)$10
• D)$100
• E)$25

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Definitions:

Total Assets

The sum of all assets owned by a business, including current, fixed, and intangible assets, representing its overall value.

Ethics

The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operating and non-operating expenses.