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    Calculate book value per share

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

    A. From the information above 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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    Solution Preview

    First you need to calculate

    No. of Common Share = 350000/2 = 175000

    Total Asset = 350000+7800000 = 8,150,000

    Book Value per ...

    Solution Summary

    The solution calculates book value per share and then rework stockholders' equity if 40,000 new shares are issued.