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:

Translation Exposure

The risk that a company's financial statements can be affected by changes in exchange rates when they have operations in foreign currencies.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Financial Statements

These are formal records of the financial activities of a business, person, or other entity, providing an overview of a financial position at a point in time.

Remitting Profits

The process of sending back earnings to a company's home country or investors.