The book value per share of common stock is the amount per share of common stock that would be received if all of a firm's assets were sold for their accounting value and the proceeds remaining were divided among common stockholders.
Indicate whether the statement is true or false
Question 2
The dividends per share paid by Fantastically Fine Ferns Inc. (FFF) doubled from a starting value of 1.50 in 2007 to a value of 3.00 in 2013 (a six-year period).
What was the approximate average annual rate of growth of FFF's dividends per share? Use the Rule of 72 to determine your answer.
A) FFF's dividends grew at an annual rate of approximately 12 per year.
B) FFF's dividends grew at an annual rate of approximately 10 per year.
C) FFF's dividends grew at an annual rate of approximately 8 per year.
D) FFF's dividends grew at an annual rate of approximately 6 per year.
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