Settles Corporation Has Provided the Following Financial Data

question 4

Multiple Choice

Settles Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's book value per share at the end of the year is closest to:

• A) $11.37 per share
• B) $7.37 per share
• C) $0.19 per share
• D) $16.81 per share

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Definitions:

Weekly Interest Rate

The interest rate applied to loans, savings, or investments calculated on a weekly basis.

Optimal Initial Cash Balance

Optimal initial cash balance is the ideal amount of cash a business should hold at the start of a period to meet operational needs and minimize costs, considering factors like transaction costs and opportunity costs.

Monthly Standard Deviation

A statistical measure that represents the variability or volatility of an asset's returns over a month.

Market Rate of Return

The average rate of return anticipated by investors in the overall market for a particular investment category.