Paper Express 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 Paper Express's book value per share?
A)$1.68
B)$2.60
C)$32.14
D)$60.71
E)none of the above

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing the common shareholders' equity by the number of common shares outstanding: $45 million / 1,400,000 shares = $32.14 per share.

Paper Express Company Has a Balance Sheet Which Lists $85