How is the book value per share calculated?
A) Book value per share = Common equity ÷ Total number of shares outstanding
B) Book value per share = Total shares issued × Per share par value
C) Book value per share = Current assets - Current liabilities
D) Book value per share = Total assets ÷ Total number of shares outstanding
E) Book value per share = Earnings available to common stockholders ÷ Total number of shares outstanding

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing the common equity by the total number of shares outstanding. Common equity represents the residual interest of the shareholders in the assets of the company after deducting liabilities. Book value per share is an important measure of the value of a company's shares and is used to assess the company's net worth.

How Is the Book Value Per Share Calculated