Marcus Nurseries Inc.'s 2005 balance sheet showed total common equity of $1,800,000, which included $1,550,000 of retained

Question:

Marcus Nurseries Inc.'s 2005 balance sheet showed total common equity of $1,800,000, which included $1,550,000 of retained earnings. The company had 120,000 shares of stock outstanding which sold at a price of $57.25 per share. If the firm had net income of $270,000 in 2006 and paid out $110,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...