Check your understanding of the word “policy" and other key words from this lesson. Match each word to the phrase that best defines it.
policy
to promise and deliver a future result
guarantee
the personal rights of a citizen to be
treated fairly under the law
civil rights
a government in which the structure is
set in a written constitution
constitutional democracy
a plan of action taken by a government
to achieve a goal

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?