What Is the Book Value Per Share for a Firm

question 107

Multiple Choice

What is the book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of .75, and a dividend payout ratio of 50 percent?

• A)$33.33
• B)$37.50
• C)$62.50
• D)$66.67 market-to-book ratio = stock price/book value per share
• )75 = $50/book value per share

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