Acme Widget,Inc.has 1,000 shareholders who own a total of two million shares of its common stock.The company earned $20 million after taxes and paid out $8 million in dividends.The company has assets of $250 million and liabilities of $50 million.What is the book value per share?
A)$2
B)$8
C)$20
D)$100
E)$250

Question

Quizplus · Accepted Answer

The book value per share is calculated by subtracting the total liabilities from the total assets and then dividing by the number of shares. Here, ($250 million - $50 million) / 2 million shares = $200 million / 2 million shares = $100 per share.