contestada

Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 300,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ

Respuesta :

tutordamola

Answer:

The answer is $10.42 per share

Explanation:

Book value per share is the value placed on a share as shown in the book (Financial statement of the company) while market value per share is the value viewed by the public.

Common equity = $5,125,000

Outstanding shares = 300,000 shares

Book value per share = common equity/outstanding shares

$5,125,000/300,000 shares

= $17.08 per share

Market price is $27.50 per share

Therefore, the difference is :

$27.50 - $17.08

= $10.42 per share

Otras preguntas