Question

Assume common stock is the only class of stock outstanding in the Manley Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called:________

a. fair value per share.
b. stated value per share.
c. book value per share.
d. par value per share.

Answer 1

c. book value per share.

Step-by-step explanation:

The Total stockholders' equity is reflected on the balance sheet along with the total assets and the total liabilities

The formula to compute the book value per share is

= Total stockholders' equity ÷ number of common stock shares outstanding

By dividing the total stockholders' equity by the number of common stock shares outstanding we get the book value per share