Micromain Company has 10,000,000 shares of common stock authorized and 8,000,000 shares outstanding, each with a $ 1.00 par value. The firm’s additional paid –in capital account has a balance of $18,000,000. The previous year’s retained earnings account was $124,000,000.In the year just ended, Micromain generated net income of $ 16,000,000 and the firm has a dividend payout ratio of 40%. What will Micromain’s book value per share be when based on the final year-end balance sheet? Hint: Sole this problem by constructing a summary of the common’s stockholders equity accounts.
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