The book value per share of common stock is the amount per share of common stock that would be received if all of the firm's assets were sold for their accounting value and the proceeds remaining were divided among common stockholders.

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The book value per share of common stock is calculated by dividing the total book value of common equity by the number of outstanding shares of common stock. It represents the net assets of the company that belong to its common shareholders. If the company were to sell all its assets and pay off its liabilities, the remaining assets would be divided among the common shareholders based on their ownership percentages. Thus, the book value per share of common stock reflects the theoretical amount each common shareholder would receive in such a scenario.

The Book Value Per Share of Common Stock Is the Amount