Tucker Electronic System's current balance sheet shows total common equity of $3,125,000.The company has 125,000 shares of stock outstanding,and they sell at a price of $52.50 per share.By how much do the firm's market and book values per share differ?

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing total common equity by the number of shares outstanding: $3,125,000 / 125,000 = $25. The market value per share is given as $52.50. The difference is $52.50 - $25 = $27.50.

Tucker Electronic System's Current Balance Sheet Shows Total Common Equity