Acme Widget, Inc

question 23

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 firm 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:

Certificate of Deposit

A time deposit financial product offered by banks to individuals that pays interest and returns the principal after a fixed period.

Draft

A preliminary version of a document or plan, subject to revision and refinement.

Negotiable Instruments

Financial documents that promise payment to the bearer or named party and can be transferred by endorsement or delivery, such as checks, promissory notes, and bills of exchange.

Writing Requirement

A legal criterion under certain statutes, such as the Statute of Frauds, that mandates certain contracts must be in written form to be legally enforceable.