What Is the Book Value Per Share of Equity for a Firm

question 59

Multiple Choice

What is the book value per share of equity for a firm with $1 million in net common equity,$50,000 in authorized share capital,25,000 shares issued,and 20,000 shares outstanding?

• A) $38.00
• B) $40.00
• C) $47.50
• D) $50.00

---

Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., in math or statistics).

Dummy Variables

Numerical variables used in statistical modeling to represent subgroups of the sample in regression analyses.

Nominal Variable

A type of variable that represents categories with no inherent numeric value or order.

Indicator Variables

Indicator variables, also known as dummy variables, are used in statistical models to encode categorical data into binary form for analysis.