Financial Statements for Laroche Company Appear Below:

Shareholders' Equity

question 202

Multiple Choice

Financial statements for Laroche Company appear below:

Shareholders' Equity:
$\begin{array}{|l|r|}\hline & \begin{array}{r}\text { Larned Company } \\\text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) }\end{array} \\\hline \text { Sales (All on Account) } & \$ 2250 \\\hline \text { Costs of Goods Sold } & \$ 1570 \\\hline \text { Gross Margin } & \$ 680 \\\hline \text { Operating Expenses } & \$ 270 \\\hline \text { Net Operating Income } & \$ 410 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 380 \\\hline \text { Income Taxes }(30 \%) & \$ 114 \\\hline \text { Net Income } & \$ 266 \\\hline\end{array}$
Total dividends during Year 2 were $\$ 166,000$ , of which $\$ 10,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 150$ .

-Laroche Company's book value per share at the end of Year 2 was closest to which of the following?

• A) $10.00.
• B) $17.50.
• C) $48.33.
• D) $52.50.

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Definitions:

sample Data

Collected portions of data from a population used to infer or estimate characteristics of the entire population.

Covariance

A measure of how much two random variables change together.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; quantifies how much the values of a dataset deviate from the mean.

Interquartile Range

A measure of statistical dispersion, which is the difference between the first and third quartiles in a dataset, showing the spread of the middle 50% of values.