If a corporation has only common stock outstanding, book value per share can be determined by dividing the total stockholders' equity by the number of shares outstanding at the end of the year.

Question

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This is because book value per share is the amount of stockholders' equity attributable to each outstanding share of common stock. Dividing the total stockholders' equity by the number of shares outstanding at the end of the year gives the book value per share.

If a Corporation Has Only Common Stock Outstanding, Book Value