ABC Corporation has assets that total $24 million and liabilities that total $8 million.It also has 1,000,000 shares of stock outstanding.What is the ABC's book value per share?

Question

Quizplus · Accepted Answer

The book value per share is calculated by subtracting total liabilities from total assets to get the equity, then dividing by the number of shares outstanding. Here, ($24 million - $8 million) / 1,000,000 shares = $16 million / 1,000,000 shares = $16 per share.

ABC Corporation Has Assets That Total $24 Million and Liabilities