a. A company has only common stock outstanding. Required Answer

a. A company has only common stock outstanding.

Required

Answer the following multiple-choice question. Total stockholders’ equity minus preferred stock equity divided by the number of shares outstanding represents the

1. Return on equity.

2. Stated value per share.

3. Book value per share.

4. Price/earnings ratio.


b. Maple Corporation’s stockholders’ equity at June 30, 2009 consisted of the following:

Preferred stock, 10%, $50 par value; liquidating value, $55 per share;

20,000 shares issued and outstanding ..........$1,000,000

Common stock, $10 par value; 500,000 shares authorized;

150,000 shares issued and outstanding ..........1,500,000

Retained earnings ...................500,000

Required

Answer the following multiple-choice question. The book value per share of common stock is

1. $10.00.

2. $12.67.

3. $13.33.

4. $17.65.


Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

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