You are given the following information on a company.
$$\begin{array} { l r }
\hline\text { Total Book Value } & \$ 3,200,000 \
\text { Total Market Value } & \$ 25,608,000 \
\text { Common shares outstanding } & 600,000 \
\hline
\end{array}$$ Which one of the following statements is correct based on the information provided?
A) The market price is $42.68 per share.
B) The investment value is $5.34 per share.
C) The par value is $5.34 per share.
D) The book value is $48.01 per share.

Question

You are given the following information on a company.
 $$\begin{array} { l r } 
\hline\text { Total Book Value } & \$ 3,200,000 \
\text { Total Market Value } & \$ 25,608,000 \
\text { Common shares outstanding } & 600,000 \
\hline
\end{array}$$ Which one of the following statements is correct based on the information provided?
A) The market price is $42.68 per share.
B) The investment value is $5.34 per share.
C) The par value is $5.34 per share.
D) The book value is $48.01 per share.

Quizplus · Accepted Answer

The market price per share is calculated by dividing the total market value by the number of shares outstanding. Thus, $25,608,000 / 600,000 = $42.68 per share.

You Are Given the Following Information on a Company Which One of the Following Statements Is Correct Based on