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Book value per share

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Information on shareholder's equity as currently shown on the books of a corporation is given as:

Common shares ($2.00 par value) $350,000
Capital in Excess of Par 0
Retained Earnings 7,800,000

a. From this information, calculate the corporation's book value per share.

b. Rework the shareholder's equity as it appears on the books if the corporation issues 40,000 new shares of common at $70 per share.

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The solution explains how to calculate the book value per share

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a. Book value per share = Total common equity/Number of common shares
Total common equity = 350,000+7,800,000 = 8,150,000
Number of ...

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