Question

ABC Corporation has assets that total $12 million and liabilities that total $4 million. It also had 500,000 shares of stock outstanding. What is the book value for ABC Corporation?

Answer 1

Answer:

The book value for ABC Corporation is $16 per share.

Explanation:

Equity = Assets - Liabilities

           = $12,000,000 - $4,000,000

           = $8,000,000

Book Value per Share = Equity/No. of Shares

                                     = $8,000,000 / 500,000

                                     = $16 per share

Therefore, The book value for ABC Corporation is $16 per share.