The following information is necessary to compute the net assets (stockholders\'
ID: 2360462 • Letter: T
Question
The following information is necessary to compute the net assets (stockholders' equity) and book value per share of common stock for Rothchild Corporation:
Compute the amount of net assets (stockholders' equity).(Omit the "$" sign in your response.)
Compute the book value per share of common stock.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)
The following information is necessary to compute the net assets (stockholders' equity) and book value per share of common stock for Rothchild Corporation:
Explanation / Answer
Book value per share indicates the amount of net assets (or stockholders’ equity) represented by each share of common stock. It is determined by dividing the total stockholders’ equity in the corporation, less the amount assigned to preferred stock (liquidation value plus dividends in arrears) by the numberof common shares outstanding. Book value does not represent the amount common stockholders would receive in the event of liquidation. If a corporation were liquidated, many assets would be sold at prices different from their carrying values in the accounting records. The resulting gains or losses would cause stockholders’ equity to change accordingly. a) $157,000 b) $23,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.