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:

Flexion

The action of bending or the condition of being bent, especially of a joint or limb.

Condylar Joint

A type of synovial joint that allows movement but restricts rotation. It's found in places like the knee and elbow.

Metacarpophalangeal

Joints located at the base of the fingers, connecting the metacarpal bones of the hand to the proximal phalanges of the fingers.

Carpalmetacarpal

Refers to the joints formed between the carpal (wrist) bones and the metacarpal bones of the hand.