#NAME?

QUESTION

Brown Fashions December 31,2008 balance sheet showed total common equity of $4,050,000 and 295,000 shares of stock outstanding. During 2008, the firm had $450,000 of net income, and it paid out $1000,000 as dividends. What was the book value per share at 12/31/08, assuming no common stock was either
Stockholders Equity Paid-in Capital: Common stock, 295000 shares issued and outstanding $ 2,950,000 Paid-in capital in excess of par common $1,100,000 —————————————————————- Total Paid-in Capital $4,050,000Less : Retained Earnings (450,000-100,000=)

—————————————- Total Stockholders Equity $ 3,700,000———————————————Book Value = Total Stockholders equity/No of shares issuedie BV = 3700,000/295000 = $12.54

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION