Paper Express Company Has a Balance Sheet Which Lists $85

question 105

Multiple Choice

Paper Express Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity.It has 1,400,000 common shares outstanding.The replacement cost of the assets is $115 million.The market share price is $90. What is Paper Express's book value per share?

• A)$1.68
• B)$2.60
• C)$32.14
• D)$60.71

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Definitions:

Invention

This is the creation of a new product, process, or idea that did not exist before.

Innovation

The introduction of something new, such as an idea, method, or device, that is designed to improve processes, products, or services.

Wide Imitation

The extensive replication of a product, service, or innovation by multiple competitors or industry participants, often signalling the success or desirability of the original.

Creative Destruction

A process through economic innovation in which older models or structures are destroyed to make way for new advancements.