Question

Baldwin's balance sheet has $92,192,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beBaldwin's book value

Answer 1

$91,192,000

Step-by-step explanation:

Calculation to determine what will be Baldwin's book value

Using this formula

Book value = Beginning value of equity + Net income - Dividends paid

Let plug in the formula

Book value = $92,192,000 + $3,000,000 - $4,000,000

Book value = $91,192,000

Therefore what will be Baldwin's book value is $91,192,000