Asked by LaQuasha Coles on Jun 05, 2024

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Book value per common share is computed by:

A) Multiplying the number of common shares outstanding times the market price per common share.
B) Dividing total assets by the number of shares outstanding.
C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding.
D) Multiplying the number of common shares outstanding by par value per share.
E) Dividing the number of common shares outstanding by stockholders' equity applicable to common shares.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's underlying value.

Common Share

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.

Stockholders' Equity

The residual interest in the assets of a corporation remaining after deducting its liabilities, representing the ownership interest of the shareholders.

  • Ascertain and comprehend the book value for each share of a corporation's common stock.
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JV
Jamielyn ValenciaJun 12, 2024
Final Answer :
C
Explanation :
Book value per common share is calculated by dividing the stockholders' equity applicable to common shares by the number of common shares outstanding. This calculation gives investors an idea of the value of their investment in the company if all assets were sold and liabilities were paid back.