Seville Corporation has net assets of $2,072,000 and share capital of $700,000. The only shares issue consists of 74,000 outstanding ordinary shares. From this information, it can be deduced that the company has:

Question

Quizplus · Accepted Answer

To calculate the book value per share, we divide the net assets by the number of outstanding shares:

Book value per share = (Net assets) / (Number of outstanding shares) 
Book value per share = ($2,072,000) / (74,000) 
Book value per share = $28

Therefore, the company has a book value of $28 per share of ordinary share.

Seville Corporation Has Net Assets of $2,072,000 and Share Capital