Which of the following mathematical expressions is used to compute the book value per share?
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

Book value per share is calculated by dividing the common equity of a company by the total number of shares outstanding. This is expressed as Book value per share = Common equity ÷ Total number of shares outstanding, and is option A. Option B is used to calculate the total par value of shares issued, while option C is used to calculate the working capital of a company. Option D is used to calculate the price to book ratio, while option E is used to calculate the earnings per share.

Which of the Following Mathematical Expressions Is Used to Compute