Bonded Paper Company has a balance sheet which lists $85 million in assets,$40 million in liabilities and $45 million in common shareholders' equity.It has 1,400,000 common shares outstanding.The replacement cost of the assets is $115 million.The market share price is $90.What is Bonded Paper's book value per share?

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing the common shareholders' equity by the number of common shares outstanding. Here, $45 million in equity divided by 1,400,000 shares equals $32.14 per share.

Bonded Paper Company Has a Balance Sheet Which Lists $85