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:

Numerical Coefficient

A number that multiplies a variable in an algebraic expression, representing the variable's rate of change.

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols but does not contain an equality sign.

Simplify

To make something easier to understand or do by reducing its complexity.

Collect Like Terms

The process of combining terms in an algebraic expression that have the same variables raised to the same power.