Red Stapler Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity. It has 1,400,000 common shares outstanding. The replacement cost of the assets is $115 million. Shares currently sell for $90. What is Red Stapler's market value per share?
A) $1.68
B) $2.60
C) $32.14
D) $60.71
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The market value per share is given as $90, which is not among the provided options. This value is directly stated in the question, and none of the calculations based on the given financial figures (assets, liabilities, equity, or replacement cost) are necessary to determine the market value per share.

Red Stapler Company Has a Balance Sheet Which Lists $85