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which one of the following is equal to the ratio of common shareholders' equity (from the balance sheet) to common shares outstanding? A. replacement cost per share C. liquidation value per share E. Tobin's q B. book value per share D. market value per share

Respuesta :

The option B is correct. Book value per share is equal to the ratio of common shareholders' equity (from the balance sheet) to common shares outstanding.

The book value per share is calculated by dividing the common shareholders' equity from the balance sheet by the number of common shares outstanding. It is a figure that appears on a company's balance sheet. It is the residual amount of assets that remain after all liabilities have been paid off. The Common Shares Outstanding is the number of shares of common stock issued to shareholders.

Book value per share is a measure of a company's net worth that is calculated by subtracting the company's total liabilities from its total assets and then dividing the remaining value by the number of outstanding shares of the company's stock. The book value per share is useful for investors as it can provide a measure of how much the company is worth per share, giving a rough indication of the company's intrinsic value. It is also useful for comparing the value of different companies in the same industry. It also provides insight into the company's financial health and stability.

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