2A2T AT THE END OF ITS FISCAL YEAR ON DECEMBER 31, 2000, MERIT WATCHE...

69.

CSO: 2A2e

LOS: 2A2t

At the end of its fiscal year on December 31, 2000, Merit Watches had total shareholders'

equity of $24,209,306. Of this total, $3,554,405 was preferred equity. During the 2001

fiscal year, Merit's net income after tax was $2,861,003. During 2001, Merit paid

preferred share dividends of $223,551 and common share dividends of $412,917. At

December 31, 2001, Merit had 12,195,799 common shares outstanding and the company

did not sell any common shares during the year. What was Merit Watch's book value per

share on December 31, 2001?

a.

$1.88.

b.

$2.17.

c.

$1.91.

d.

$2.20.