What Is the Book Value Per Share for a Firm

question 95

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%?

• A) $33.33
• B) $37.50
• C) $62.50
• D)$66.67

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Definitions:

Tchebysheff's Theorem

A statistical rule stating that for any data set, regardless of distribution, a minimum proportion of values lie within a certain number of standard deviations from the mean.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how spread out the data are.

Mean

Calculating the average involves summing all numbers in a set and then dividing by the quantity of those numbers.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.