A company balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. If a company could sell its assets for $55 million, the company's liquidation value per share of common stock is $15.a O $10.b $20.c $30.d O

A company balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. If a company could sell its assets for $55 million, the company's liquidation value per share of common stock is $15.a O $10.b $20.c $30.d O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

A company balance sheet
showed total assets of $60
million, total liabilities
(including preferred stock) of
$45 million, and 1,000,000
shares of common stock
outstanding, If a company
could sell its assets for $55
million, the company's
liquidation value per share of
common stock is
$15.a O
$10.b
$20.c
$30.d O

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