Please Refer to the Equity Section of the Balance Sheet

question 151

Multiple Choice

Please refer to the equity section of the balance sheet, below:
$\begin{array}{|l|l|}\hline\text { Preferred stock, } \$ 50 \text { par, } 4 \% \text {, cumulative } & \$ 5,000 \\\hline 1,000 \text { shares authorized, } 100 \text { shares outstanding } & \\\hline \text { Common stock, } \$ 0.01 \text { par } & 120\\\hline 1,000,000 \text { shares authorized, } 12,000 \text { shares outstanding } & \\\hline \text { Paid-in capital in exces of par } & 359,600 \\\hline \text { Retained earnings } & 153,280 \\\hline \text { Total stockholders' equity } & \$ 518,000\\\hline\end{array}$
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Assume there are no dividends in arrears. What is the book value per share of common stock?

• A) $50.00 per share
• B) $42.75 per share
• C) $52.00 per share
• D) $41.00 per share

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Definitions:

Low Income

Describes individuals or families that earn significantly less money than the average in their society, often leading to financial challenges.

Child Culture

The unique practices, norms, rituals, and ways of life that are developed and shared among children, distinct from adult society.

Peer Values

The beliefs and standards considered important by one's peers, which can significantly influence an individual's behavior and attitudes.

Older Children

Refers to children in the later stages of childhood, typically from about 7 to 12 years old, just before adolescence.