You are given the following shareholders' equity figures for Toronto Skaters Inc.(TS)for the fiscal year ends of 2020, 2021, and 2022.What is TS's book value per share for each of the three years, beginning with 2020?

A)$1.92, $2.25, and $1.01
B)$2.50, $2.87, and $1.68
C)$7.38, $7.82, and $6.62
D)$1.30, $1.28, and $1.66

Question

You are given the following shareholders' equity figures for Toronto Skaters Inc.(TS) for the fiscal year ends of 2020, 2021, and 2022.What is TS's book value per share for each of the three years, beginning with 2020?

A)$1.92, $2.25, and $1.01 
B)$2.50, $2.87, and $1.68 
C)$7.38, $7.82, and $6.62 
D)$1.30, $1.28, and $1.66

Quizplus · Accepted Answer

To calculate the book value per share, we need to divide the shareholders' equity by the number of outstanding shares.

For 2020:
Book value per share = Shareholders' equity / Number of outstanding shares
= $67,500,000 / 27,000,000
= $2.50

For 2021:
Book value per share = Shareholders' equity / Number of outstanding shares
= $77,850,000 / 27,100,000
= $2.87

For 2022:
Book value per share = Shareholders' equity / Number of outstanding shares
= $45,000,000 / 26,800,000
= $1.68

Therefore, the best choice is B, which shows the book value per share for each of the three years as $2.50, $2.87, and $1.68.

You Are Given the Following Shareholders' Equity Figures for Toronto