Seville Corporation has net assets of $4,896,000 and paid-in capital of $800,000

Question

Seville Corporation has net assets of $4,896,000 and paid-in capital of $800,000. The only stock issue consists of 68,000 outstanding shares of common stock. From this information, it can be deduced that the company has:

A book value of $72 per share of common stock.

A book value of $11.76 per share of common stock.

Retained earnings of $4,896,000.

A deficit of $4,896,000.

Seville Corporation has net assets of $4,896,000 and paid-in capital of $800,000. The only stock issue consists of 68,000 outstanding shares of common stock. From this information, it can be deduced that the company has:

Explanation / Answer

Book value per share would be equal to=Net assets/Shares outstanding

which is equal to

=(4,896,000/68,000)

=$72(A)

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