Common stockholders' calculating equity divided by number of shares of common stock outstanding is the formula for
A)earnings per share (EPS).
B)dividends per share (DPS).
C)book value per share (BVPS).
D)market value per share (MVPS).

Question

Quizplus · Accepted Answer

The formula to calculate book value per share (BVPS) is equity divided by the number of common shares outstanding. Therefore, common stockholders' calculating equity divided by the number of shares of common stock outstanding is the formula for BVPS. EPS is calculated by dividing earnings available to common shareholders by the number of shares of common stock outstanding. DPS is calculated by dividing total dividends paid to common shareholders by the number of shares of common stock outstanding. MVPS is the current market price of a share of common stock.

Common Stockholders' Calculating Equity Divided by Number of Shares of Common