At fiscal year end, December 31, 2017, Alpha Corporation had total stockholders\

Question

At fiscal year end, December 31, 2017, Alpha Corporation had total stockholders' equity of $10,000,000. There is only one class of common stock and no preferred stock. On January 1, 2017 the Common Stock account was value at $500,000. On July 1, 2017, Alpha issued 20,000 additional shares of its $5 par common stock for $15 per share. Use this information to determine the book value per share as of end of the FY 2017: (Round your answer to the nearest penny:) At fiscal year end, December 31, 2017, Alpha Corporation had total stockholders' equity of $2,000,000 On FY 2017 year end, Alpha Corporation had Common Stock account of $1,000,000 of $10 par value common stock and Preferred Stock account of $100,000 of $100 par value. There was no treasury stock. The preferred stock was noncumulative and had a call price of S110. Use this information to determine the book value per share of Common Stock as of end of the FY 2017: (Round your answer to the nearest penny.)

Explanation / Answer

Answer 1:

Total stockholder's equity = $10,000,000

Total Number of shares = $500000/$5 + 20000shares = 120000 shares

Book Value per share = Total Equity/Total Number of shares = $10,000,000/120000 = $83.33 per share.

Answer2:

Book value per share : = $2,000,000 - (1,000 shares x $110) / 10,000 shares = $189 per share

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