What value of a stock is calculated by dividing the firm's owners' equity by the total number of common shares of stock owned by all shareholders?
A) Par value
B) Market value
C) Book value
D) Dividend value
E) Total value

Question

Quizplus · Accepted Answer

The value of a stock calculated by dividing the firm's owners' equity by the total number of common shares of stock owned by all shareholders is known as the book value per share. This valuation represents the net worth of the company per share and can provide a useful indicator of the stock's underlying value. Therefore, the best choice is C, Book value.

What Value of a Stock Is Calculated by Dividing the Firm's