Weyerhaeuser Incorporated has a balance sheet that lists $78 million in assets, $52 million in liabilities, and $26 million in c

Question

3 years ago

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Weyerhaeuser Incorporated has a balance sheet that lists $78 million in assets, $52 million in liabilities, and $26 million in c

ommon shareholders' equity. It has 1 million common shares outstanding. The replacement cost of its assets is $99 million. Its share price in the market is $46. Its book value per share is _________.

Business

1 answer:

Olin [163] · Answer 1 · 2022-09-27T11:48:59+03:00

Answer:

Book value per share of Weyerhaeuser Incorporated is $26 per share.

Explanation:

Book value per share (BVPS) refers to the ratio of the common shareholders' equity of a company to its number of shares outstanding. This can be expressed mathematically as folllows:

Book value per share = Common shareholders' equity / Number of common shares outstanding .......................... (1)

Where;

Common shareholders' equity = $26 million

Number of common shares outstanding = $1 million

Substituting the values into equation (1), we have:

Book value per share = $26 million / $1 million = $26 per share.

Therefore, book value per share of Weyerhaeuser Incorporated is $26 per share.