Atlantic Coast Resources Company had the following balance sheet at the end of 2014: Atlantic Coast Resources

Question:

Atlantic Coast Resources Company had the following balance sheet at the end of 2014:

Atlantic Coast Resources is concerned about its book value per share, which is computed by dividing the total equity on the balance sheet by the number of outstanding shares of stock.

a. What is the book value per share of Atlantic’s common stock?

b. Suppose the firm sold the remaining authorized shares and netted $32.55 per share from the sale. What would be the new book value per share?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Nov 24, 2014 08:15 AM

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The correct entry should be Debit: Armstrong, Capital $48,000 Credit: Cash $58,000 Debit: Jackson, Capital $5,000 Debit: Tanner, Capital $5,000

Atlantic Coast Resources Company had the following balance sheet at the end of 2014: Atlantic Coast Resources

Question:

Atlantic Coast Resources Company: Balance Sheet December 31, 2014 Accounts payable Notes payable Long-term debt Common stock (30,000 authorized, 20,000 shares outstanding) Retained earnings Total liabilities and equity 64,400 71,400 151,200 364,000 336,000 $987,000 Total assets $987,000

Step by Step Answer:

a Book value per share 364000 33600020000 35...View the full answer

Principles of Finance

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