Total current liabilities
Year-end stock price
$43.39
Refer to Exhibit 4.1. What is the firm\'s book value per share?
$26.00
$24.70
$22.29
$23.47
$27.30Balance Sheet (Millions of $)Assets2014Cash and securities$ 2,500Accounts
receivable11,500Inventories16,000Total current assets$30,000Net plant and
equipment$20,000Total assets $50,000Liabilities and EquityAccounts payable$ 9,500Accruals
5,500Notes payable 7,000
Total current liabilities
$22,000Long-term bonds$15,000Total liabilities$37,000Common stock$ 2,000Retained
earnings11,000Total common equity$13,000Total liabilities and equity $50,000Income
Statement (Millions of $)2014Net sales$87,500Operating costs except
depreciation81,813Depreciation1,531Earnings bef interest and taxes (EBIT)$ 4,156Less
interest1,375Earnings before taxes (EBT)$ 2,781Taxes973Net income$ 1,808Other data:Shares
outstanding (millions)500.00Common dividends$632.73Int rate on notes payable & L-T
bonds6.25%Federal plus state income tax rate35%
Year-end stock price
$43.39
Solution
Book value per share = total equity/no of shares ie = 13000/500 26 So option a is
correct.
Total current liabilitiesYear-end stock price$43.39Refer.pdf
1. Total current liabilities
Year-end stock price
$43.39
Refer to Exhibit 4.1. What is the firm's book value per share?
$26.00
$24.70
$22.29
$23.47
$27.30Balance Sheet (Millions of $)Assets2014Cash and securities$ 2,500Accounts
receivable11,500Inventories16,000Total current assets$30,000Net plant and
equipment$20,000Total assets $50,000Liabilities and EquityAccounts payable$ 9,500Accruals
5,500Notes payable 7,000
Total current liabilities
$22,000Long-term bonds$15,000Total liabilities$37,000Common stock$ 2,000Retained
earnings11,000Total common equity$13,000Total liabilities and equity $50,000Income
Statement (Millions of $)2014Net sales$87,500Operating costs except
depreciation81,813Depreciation1,531Earnings bef interest and taxes (EBIT)$ 4,156Less
interest1,375Earnings before taxes (EBT)$ 2,781Taxes973Net income$ 1,808Other data:Shares
outstanding (millions)500.00Common dividends$632.73Int rate on notes payable & L-T
bonds6.25%Federal plus state income tax rate35%
Year-end stock price
$43.39
Solution
Book value per share = total equity/no of shares ie = 13000/500 26 So option a is
correct
