8. What does book value per share of common stock repre- sent? Does it represent the amount common stockholders would receive in the event of liquidation of the corporation? Explain briefly. 9. What would be the effect, if any, on book value per share of common stock as a result of each of the following indepen- dent events: (a) a corporation obtains a bank loan; (b) a divi- dend is declared (to be paid in the next accounting period)? 10. In the stock market crash of October 19, 1987, the market price of IBM’s capital stock fell by over $31 per share. Explain the effects, if any, of this decline in share price on IBM’s balance sheet.
Solution ID:10137711 | Question answered on 16-Oct-2016
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