Porpoise Company Has the Following Balances

question 79

Multiple Choice

Porpoise Company has the following balances:
• Common stock: $2,000
• Paid-in capital in excess of par: $298,000
• Retained earnings: $420,000
The company has no preferred stock and has 24,000 shares of common stock outstanding.
How much is the book value per share of common stock?

• A) $12.50 per share
• B) $30.00 per share
• C) $12.42 per share
• D) $29.80 per share

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Definitions:

Modernization Theory

A theory suggesting that traditional societies will develop economically and socially to become more 'modern', following the patterns of Western societies.

Technological Change

The process by which new technologies are developed and introduced into society, influencing various aspects of life.

Dependency Theory

A theory suggesting that the economic conditions of wealthier nations are directly linked to the poverty of less developed nations, due to an unequal global system that benefits rich countries at the expense of poorer ones.

Economic Success

The achievement of financial goals and stability, often measured by factors such as income, wealth accumulation, and employment status.