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Question
Micromain Company has 10,000,000 shares of common stock authorized and 8,000,000 shares outstanding, each with a $1.00 par value. The firm's additional paid-in capital account has a balance of $18,000,000. The previous year's retained earnings account was $124,000,000. In the year just ended, Micromain generated net income of $16,000,000 and the firm has a dividend payout ratio of 40 percent. What will Micromain's book value per share be when based on the final year-end balance sheet?
a. $20.75
b. $15.00
c. $15.96
d. $19.95
e. $18.75
Answer
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