Question

Chester's balance sheet has $105,038,000 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 beChester's book value?

Answer 1

$112,038,000

Step-by-step explanation:

The book value is computed as shown below:

= Equity balance + net income + issue of new stock

= $105,038,000 + $3,000,000 + $4,000,000

= $112,038,000