Question

at the end of 20x7, ez storage company reported 15,000 outstanding common shares that were trading at $40/share. total liabilities were $440,000 and total assets were $860,000. the company had no preferred shares. what was the book value per common share?

Answer 1

The book value per common share for EZ Storage Company at the end of 20x7 is $28, calculated by dividing the company's total equity of $420,000 by the number of outstanding common shares, which is 15,000.

Step-by-step explanation:

To calculate the book value per common share, we first need to determine the company's total equity. Total equity is found by subtracting total liabilities from total assets. In this case, EZ Storage Company's total equity is $860,000 (total assets) - $440,000 (total liabilities) = $420,000. Then, we divide the total equity by the number of outstanding common shares to find the book value per share.

The calculation is as follows:

$420,000 / 15,000 shares = $28 per share.

Therefore, the book value per common share for EZ Storage Company at the end of 20x7 is $28.