SIE practice questionmediumBook Value
Book value per share is best described as:
- ATotal dividends divided by shares outstanding
- BMarket price of a share times total shares outstanding
- CAnnual earnings divided by shares outstanding
- DNet assets divided by shares outstanding✓ Correct answer
Explanation
Why D — Net assets divided by shares outstanding
Book value per share is the company's net asset value divided by shares outstanding. It is not based on market value, earnings, or dividends.
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