A company has 40,000 shares of common stock outstanding. The stockholders' equity applicable to common shares is $470,000, and the par value per common share is $10. The book value per share is:

A-$0.09
B-$1.75
C-$10.00
D-$11.75
E-$47.50.


Answer: D-$11.75

Book value per share = current shareholders' equity divided by # of shares outstanding.

470,000/40,000 = 11.75

Business

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