Paper Express Company Has a Balance Sheet Which Lists $85

question 39

Multiple Choice

Paper Express Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity.It has 1,400,000 common shares outstanding.The replacement cost of the assets is $115 million.The market share price is $90. What is Paper Express's book value per share

• A)$1.68
• B)$2.60
• C)$32.14
• D)$60.71
• E)None of the options

---

Definitions:

Product Line

A product line is a group of related products under a single brand offered by a company to fulfill different consumer needs.

Sales Estimate

A projected figure indicating the amount of sales a company expects to achieve in a certain period.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales after operating expenses are deducted.