Book Value per Share Calculation | General Industries Common Stock

Calculate Book Value per Share of General Industries Common Stock

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Question

Calculate the book value per share of General Industries common stock, given the following information. Par value of common stock, $1 per share; total assets,

$12,565,000; retained earnings, $5,550,000; total liabilities, $5,012,500; number of common shares outstanding, 475,000; number of preferred shares outstanding, 0. Market value of common stock, $96.25.

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The book value of the firm's common stock is $15.90 which is calculated as follows: total assets of $12,565,000, minus total liabilities of $5,012,500, minus, preferred stock outstanding of $0, divided by the number of common shares outstanding of 475,000.