Weyerhaeuser Incorporated Has a Balance Sheet Which Lists $70 Million

question 52

Multiple Choice

Weyerhaeuser Incorporated has a balance sheet which lists $70 million in assets,$45 million in liabilities and $25 million in common shareholders' equity.It has 1,000,000 common shares outstanding.The replacement cost of its assets is $85 million.Its share price in the market is $49.Its book value per share is _________.

• A) $16.67
• B) $25.00
• C) $37.50
• D) $40.83

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Definitions:

Noncumulative Nonparticipating

Refers to a type of preferred stock that does not allow for the accumulation of unpaid dividends if they are not declared by the board, nor does it participate in the extra profits of the company.

Cash Dividends

Payments made to shareholders out of a corporation's earnings in the form of cash.

Stable Earnings

Earnings that show little variability and predictability over a period, indicative of financial stability in a company.

Preferred Stock

A type of stock that generally provides dividends to its holders before dividends are issued to common stockholders, and typically has rights to assets before common stock upon liquidation.