Marcus Nurseries Inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. If the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock? (10p) a. $20.00 b. $21.00 c. $22.00

c. $22.00

Explanation:

The book value of the Marcus Nurseries Inc. share at the end of the 2006 shall be determined through the following mentioned formula:

Book value per share= Book value of the equity at the end of 2006/number of shares outstanding

Book value of equity at the end of 2006=Total equity at the start of 2006+net income for the year 2006- dividend paid during the 2006.

Book value of equity=$2,050,000+$250,000-$100,000

                                   =$2,200,000

Number of shares outstanding=100,000

Book value per share=$2,200,000/100,000=$22

So based on the above discussion, the answer is c. $22.00

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

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explanation: