SIE practice questionmediumBook Value
If a company has $10 million in assets, $4 million in liabilities, and 1 million shares outstanding, what is the book value per share?
- A$14
- B$4
- C$10
- D$6✓ Correct answer
Explanation
Why D — $6
Book value per share: ($10M - $4M)/1M = $6 per share. The other answers result from incorrect calculations.
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