The Formula for Computing Book Value Per Share of Common

question 56

Multiple Choice

The formula for computing book value per share of common stock is

• A)market price per share of common stock/earning per share.
• B)annual dividend per share of common stock/market price per share of common stock.
• C)(net income - preferred dividends)/number of shares of common stock outstanding.
• D)(yotal stockholders' equity - preferred equity)/number of shares of common stock outstanding.

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Machine-Hours

A measure of production time using machines, typically used as a basis for allocating manufacturing overhead to products.

Denominator Level

In cost accounting, refers to the total quantity or capacity used to allocate fixed costs to different cost objects.

Budget Variance

The difference between what was budgeted for a period and what was actually spent or received.