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What Is the Book Value Per Share for a Firm

Question 78

Multiple Choice

What is the book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of .75, and a dividend payout ratio of 50%?


A) $33.33
B) $44.44
C) $55.55
D) $66.67 market-to-book ratio = stock price/book value per share
) 75 = $50/book value per share

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