The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:...

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The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:...

The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:


Common stock—$15 par value, 150,000 shares authorized, 54,000 shares issued and outstanding	$	810,000
Paid-in capital in excess of par value, common stock		525,000
Retained earnings		675,000
Total stockholders’ equity	$	2,010,000

On February 5, the directors declare a 10% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $39 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28.

One stockholder owned 700 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)

	Before	After
Book value per share
Total book value of shares

business accounting

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Answer 1

Answer #1

	Before	After
Book value per share	37.222	33.838
Total book value of shares	26055	26055
	or 26056	or 26056

Workings:
	Before	After
Total stockholders’ equity	2010000	2010000
Divide by Issued and distributable shares	54000	59400
Book value per share	37.222	33.838
X Shares owned	700	770
Total book value of shares	26055	26055

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Answer 2

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