Question

Maarvel Co. has 31,000 shares of common stock outstanding on December 31, 2018. The Paid-in Capital in Excess of Par account for the Common Stock has a $150,000 balance on December 31, 2018. Maarvel Co. also has some Treasury Stock on December 31, 2018. The Total stockholders' equity on December 31, 2018 applicable to the shares of common stock is $393,700. The the par value per common share is $10. Calculate Maarvel Co.'s Book Value per share on December 31, 2018.

a. $48 38
b. $1.80
c. $0.08
d. $10.0

Answer 1

$12.7 per share

Step-by-step explanation:

The formula and the computation of the book value per share are shown below:

Book value per share = (Total equity) ÷ (outstanding number of shares)

= ($393,700) ÷ (31,000 shares)

= $12.7 per share

Simply we divided the total equity by the outstanding number of shares to get the book value per share