Consider the following financial information for Kimberly-Clark Corporation stock. What is Kimberly-Clark's book value per share?
Kimberly-Clark
Stock price per share: $142.06
Earnings per share: $6.65
Price-to-book ratio: 3.0802

Question

Quizplus · Accepted Answer

The price-to-book ratio is the market price per share divided by the book value per share. Using algebra, we can rearrange the formula to find the book value per share:

Price-to-book ratio = Market price per share / Book value per share

3.0802 = 142.06 / Book value per share

Book value per share = 142.06 / 3.0802 = $46.12

Consider the Following Financial Information for Kimberly-Clark Corporation Stock