Book value per common share is computed by:
A)Multiplying the number of common shares outstanding times the market price per common share.
B)Dividing total assets by the number of shares outstanding.
C)Dividing stockholders' equity applicable to common shares by the number of common shares outstanding.
D)Multiplying the number of common shares outstanding by par value per share.
E)Dividing the number of common shares outstanding by stockholders' equity applicable to common shares.

Question

Quizplus · Accepted Answer

Book value per common share is calculated by dividing stockholders' equity applicable to common shares by the number of common shares outstanding. This provides an indication of the amount of equity that each common share represents.

Book Value Per Common Share Is Computed By