Book Value
Menza Company has stockholders’ equity accounts as follows:
Common stock (100,000 shares @ $10 par value) | $1,000,000 |
Additional paid-in capital on common stock | 750,000 |
Retained earnings | 800,000 |
Calculate the amount of book value per share for common stock and summarize briefly what that figure means in relation to the current market value of the stock.
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