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8 April, 12:32

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?

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  1. 8 April, 13:00
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    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.
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