Answer:
Book Value Per Share = 22.55
Explanation:
given data
equity = $118,139,000
net income next year = $3,000,000
to find out
what would their Book Value be next year
solution
we know that Book Value Per Share formula that is express as
Book Value Per Share = (Share Holder Equity+ Net Income) ÷ No of Shares ..................1
we consider here book value is $22
So no of share will be = [tex]\frac{share\ holder}{book value}[/tex]
No of shares = [tex]\frac{118,139,000}{22}[/tex]
No of shares = 5369954.545
so from equation 1 put here value
Book Value Per Share = [tex]\frac{118,139,000 +3,000,000}{5369954.545}[/tex]
Book Value Per Share = 22.55
