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Question: a company had the following stockholders equity on january 1...

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A company had the following stockholders' equity on January 1. On January 10, the company declared a 40% stock dividend to stockholders of record on January 25, to be distributed January 31. The market value of the stock on January 10 prior to the dividend was $20 per share. Using Excel, how would you calculate book value per common share XYZ Company below on February 1?

1

A

B

2

Common Stock - $1 par value; 1,000,000 shares authorized, 350,000 shares issued and outstanding

$350,000

3

Paid-in capital in excess of par value, common stock

700,000

4

Retained earnings

364,0000

5

Total stockholders' equity

$1,414,000

=B6/(B2+(B2*0.4))

=B6/B2

=B2/B6

=(B2+(B2*.4))/B6

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