Linzey Corporation has provided the following data:
The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:
A) $22.45 per share
B) $12.45 per share
C) $0.55 per share
D) $15.45 per share

Question

Linzey Corporation has provided the following data:
 The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:
A) $22.45 per share 
B) $12.45 per share 
C) $0.55 per share 
D) $15.45 per share

Quizplus · Accepted Answer

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $927,000 ÷ 60,000 shares = $15.45 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $120,000 ÷ $2 per share = 60,000 shares

Linzey Corporation Has Provided the Following Data