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Company X is presumably doing well. The corporation's balance sheet last September 31 can be summarized as follows:

Total Assets                                                                                            $6,000,000

Total Liabilities                                                                                       $2,000,000

Stockholder's equity:

Common stock:                                                                                     1,500,000 shares

of $1.00 par value shares issued

andoutstanding                                                              $1,500,000

Retained Earnings                                                             $3,000,000

Total Stockholders' equity                                                  $4,500,000

Total Liabilities & Stockholders'

Equity                                                                              $6,500,000

Net Income last year was $.5 million. The common stock is currently selling for $11.00 per share.

Compute the following and show the formula:

Book value of the corporation

Book value per share

Value of the corporation if earnings are capitalized at 200

Capitalized value per share

Market value of the entire corporation.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9533066

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