JM Case Inc.has a market value of $5 million with 500,000 shares outstanding.The book value of its equity is $1,750,000.What is JM Case's book value per share?
A) $3.50
B) $5
C) $10
D) $25
E) $50
F) None of the above.

Question

Quizplus · Accepted Answer

Book value per share is calculated by dividing the total book value of equity by the number of outstanding shares. 
Book Value per Share = Total Book Value of Equity / Number of Outstanding Shares 
Book Value per Share = $1,750,000 / 500,000 = $3.50 
Therefore, the correct answer is A) $3.50.