If only common stock is outstanding,total stockholders' equity divided by the number of shares of common stock outstanding is called the
A)par or stated value per share.
B)call value per share.
C)book value per share.
D)market value per share.

Question

Quizplus · Accepted Answer

The formula described in the question is used to calculate the book value per share, which is the amount of stockholders' equity that can be attributed to each share of common stock outstanding. This measure represents the value of the company's assets and liabilities per share and can be used as an indicator of how much a shareholder would expect to receive if the company were to be liquidated. Choices A, B, and D do not accurately describe this measure.

If Only Common Stock Is Outstanding,total Stockholders' Equity Divided by the Number