For each of the following, calculate the book value (per share) expressed in dollars and cents (Rounded to two decimal places. Total Outstanding Total Stockholders' Equity $ 2,000,000 unknown Shares 1,000,000 200,000 (a) (b) Total Assets $ 6,000,000 $ 2,500,000 a. Book value (per share) b. Book value (per share) Total Liabilities unknown $1,500,000
For each of the following, calculate the book value (per share) expressed in dollars and cents (Rounded to two decimal places. Total Outstanding Total Stockholders' Equity $ 2,000,000 unknown Shares 1,000,000 200,000 (a) (b) Total Assets $ 6,000,000 $ 2,500,000 a. Book value (per share) b. Book value (per share) Total Liabilities unknown $1,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![which filed its financial statements almost two weeks prior to the short-selling spree, Koss Corporation filed its financial
statements on the same day its stock price reached an all-time high (January 29, 2021). This timing allows us to cleanly
compare stock price to book value per share. The accompanying graph presents per-share stock prices and book values
on Koss's financial statement release dates over a 6.5-year period. As shown in the graph, book value provides a more
stable and conservative measure of value than stock price. Book value is a conservative measure because it is primarily
based on past transactions and events that have directly affected the company.
$ 70.00
$ 60.00
$ 50.00
$ 40.00
$ 30.00
$ 20.00
$ 10.00
$ 0.00
(a)
(b)
Aug. 28,
2015
Koss Corporation (KOSS)
Aug. 25, Aug. 25, Aug. 23,
2016 2017 2018
Closing Stock Price per Share
Aug. 30,
2019
Aug. 27,
2020
-Book Value per Share
¹Caplinger, D. "Yes, a stock can have short interest over 100% -- Here's how." The Motley Fool, 28 Jan. 2021, www.fool.com/investing/2021/01/28/yes-a-stock-can-have-short-interest-
over-100-heres/. Accessed 3 Feb. 2021.
2u/player896. "Bankrupting Institutional Investors for Dummies, ft GameStop." Reddit, 19 Sept. 2020,
a. Book value (per share)
b. Book value (per share)
www.reddit.com/r/wallstreetbets/comments/ivs6dw/bankrupting_institutional_investors_for_dummies/. Accessed 3 Feb. 2021.
3Robertson, H. "Short-sellers are nursing estimated losses of $19 billion in 2021 after better on GameStop's stock to plunge." Business Insider, 30 Jan. 2021,
markets.businessinsider.com/news/stocks/short-sellers-sitting-on-19-billion-of-losses-on-gamestop-data-shows-2021-1-1030020684. Accessed 3 Feb. 2021.
CE1-4 Calculating Per-Share Book Value [LO1-3]
Total Assets
$ 6,000,000
$ 2,500,000
For each of the following, calculate the book value (per share) expressed in dollars and cents (Rounded to two decimal places.)
Total Outstanding
Total Stockholders'
Equity
Shares
$ 2,000,000
unknown
1,000,000
200,000
Jan. 29,
2021
Total Liabilities
unknown
$ 1,500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12f8a0fc-1854-4818-b6ef-1f9785f9b097%2F2eb2571d-62c2-4eb0-bdc9-1e21c18c8ff6%2Fgryfbql_processed.png&w=3840&q=75)
Transcribed Image Text:which filed its financial statements almost two weeks prior to the short-selling spree, Koss Corporation filed its financial
statements on the same day its stock price reached an all-time high (January 29, 2021). This timing allows us to cleanly
compare stock price to book value per share. The accompanying graph presents per-share stock prices and book values
on Koss's financial statement release dates over a 6.5-year period. As shown in the graph, book value provides a more
stable and conservative measure of value than stock price. Book value is a conservative measure because it is primarily
based on past transactions and events that have directly affected the company.
$ 70.00
$ 60.00
$ 50.00
$ 40.00
$ 30.00
$ 20.00
$ 10.00
$ 0.00
(a)
(b)
Aug. 28,
2015
Koss Corporation (KOSS)
Aug. 25, Aug. 25, Aug. 23,
2016 2017 2018
Closing Stock Price per Share
Aug. 30,
2019
Aug. 27,
2020
-Book Value per Share
¹Caplinger, D. "Yes, a stock can have short interest over 100% -- Here's how." The Motley Fool, 28 Jan. 2021, www.fool.com/investing/2021/01/28/yes-a-stock-can-have-short-interest-
over-100-heres/. Accessed 3 Feb. 2021.
2u/player896. "Bankrupting Institutional Investors for Dummies, ft GameStop." Reddit, 19 Sept. 2020,
a. Book value (per share)
b. Book value (per share)
www.reddit.com/r/wallstreetbets/comments/ivs6dw/bankrupting_institutional_investors_for_dummies/. Accessed 3 Feb. 2021.
3Robertson, H. "Short-sellers are nursing estimated losses of $19 billion in 2021 after better on GameStop's stock to plunge." Business Insider, 30 Jan. 2021,
markets.businessinsider.com/news/stocks/short-sellers-sitting-on-19-billion-of-losses-on-gamestop-data-shows-2021-1-1030020684. Accessed 3 Feb. 2021.
CE1-4 Calculating Per-Share Book Value [LO1-3]
Total Assets
$ 6,000,000
$ 2,500,000
For each of the following, calculate the book value (per share) expressed in dollars and cents (Rounded to two decimal places.)
Total Outstanding
Total Stockholders'
Equity
Shares
$ 2,000,000
unknown
1,000,000
200,000
Jan. 29,
2021
Total Liabilities
unknown
$ 1,500,000
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