JM Case Inc.has a market value of $5 million with 500,000 shares outstanding.The book value of its equity is $1,750,000.What is JM Case's price per share?
A) $3.50
B) $5
C) $10
D) $25
E) $50

Question

Quizplus · Accepted Answer

To find the price per share, we divide the market value by the number of shares outstanding.

Price per share = Market value / Number of shares outstanding

Price per share = $5,000,000 / 500,000

Price per share = $10

Therefore, the best choice is C) $10.