Answered

Find expert answers and community insights on IDNLearn.com. Discover the information you need from our experienced professionals who provide accurate and reliable answers to all your questions.

Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 520,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ

Sagot :

Abiolataiwo2015idn

Answer:

$17.64

Explanation:

Calculation for By how much do the firm's market and book values per share differ

Using this formula

Market and book values per share=[Price per share- (Total common equity/Shares of stock outstanding)]

Let plug in the formula

Market and book values per share=[$27.50 per share-($5,125,000 / 520,000)

Market and book values per share=($27.50 per share -$9.86)

Market and book values per share=$17.64

Therefore By how much do the firm's market and book values per share differ is $17.64

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.