The Formula for Computing Book Value Per Share of Common

question 33

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)(total stockholders' equity - preferred equity)/number of shares of common stock outstanding.

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Definitions:

Joint Tenants

Property owners holding property under joint tenancy, where each has an equal and undivided right to keep or dispose of the property.

Undivided Interest

Ownership rights in a property shared by all co-owners, without any designated portion belonging to any one owner.

Executes

Carries out, completes, or performs a task, agreement, or legal document.

Delivers

The act of transferring possession of an item or completing a service as per an agreement or contract.