Question

The Aquatics Corporation issues only common stock. It has total stockholders' equity of $200,000 and 50,000 outstanding shares. The par value of each share is $3. The book value per share of stock is:

Answer 1

The book value per share of stock for Aquatics Corporation is $4, calculated by dividing the total stockholders' equity of $200,000 by the 50,000 outstanding shares.

Step-by-step explanation:

The book value per share of stock for Aquatics Corporation can be calculated by dividing the total stockholders' equity by the number of outstanding shares. Given that the total stockholders' equity is $200,000 and there are 50,000 outstanding shares, the book value per share would be:

$200,000 / 50,000 shares = $4 per share.

The par value of each share is $3, which is the nominal value of the share and does not affect the book value per share calculation.

The book value per share of stock can be calculated by dividing the total stockholders' equity by the number of outstanding shares. In this case, the total stockholders' equity is $200,000 and there are 50,000 outstanding shares. Therefore, the book value per share of stock is $4.00 ($200,000 / 50,000 = $4.00).