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Book value per common share is computed by:

A. Dividing total assets by the number of shares outstanding.
B. Multiplying the number of common shares outstanding times the market price per common share.
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.

Respuesta :

Answer:

(C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding

Explanation:

Book value per common share is computed by dividing the net assets of the Company by the number of shares outstanding.

[tex]BV/share = \frac{Total Assets - Total Liabilities}{Number of Shares Outstanding}[/tex]

[tex]= \frac{Net Assets}{Number of Shares Outstanding}[/tex]

[tex]= \frac{Stockholders' Equity}{Number of Shares Outstanding}[/tex]

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