At year end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Based on this information, Tangshan's book value per share of common stock is ________.

Question

Quizplus · Accepted Answer

The book value per share is calculated as (Total Assets - Total Liabilities) / Number of Common Shares. Here, ($60 million - $45 million) / 1,000,000 shares = $15 per share.

At Year End, Tangshan China Company Balance Sheet Showed Total