The Digby\'s balance sheet has $104,494,000 in equity. Further, the company is e

Question

The Digby's balance sheet has $104,494,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?

Select: 1

$16.27

$72.45

$33.55

$32.61

The Digby's balance sheet has $104,494,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?

Select: 1

$16.27

$72.45

$33.55

$32.61

Explanation / Answer

book value/share = (previous book value + net income)/number of share = (104494000+3000000)/3204362 = 33.55

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