Answer (A) is correct . The book value per common share equals the net assets (equity) attributable to common shareholders divided by the common shares outstanding, or $18.50 [($10,000,000 common stock + $18,000,000 additional paid-in capital + $9,000,000 RE) ¡Â ($10,000,000 ¡Â $5 par)].Answer (B) is incorrect because The amount of $5.00 is the par value per share.
Answer (C) is incorrect because The amount of $14.00 fails to include retained earnings in the portion of equity attributable to common shareholders.
Answer (D) is incorrect because The amount of $100 is the par value of a preferred share.
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The book value per share of Smith Corporation’s common stock is
