_________ is equal to (common shareholders’ equity/common shares outstanding).

book value per share
liquidation value per share
market value per share
Tobin's Q

The correct answer is: A. book value per share.

Book value per share is calculated by dividing a company’s common shareholders’ equity by the number of common shares outstanding. It is a measure of a company’s net worth per share, and it is often used as a starting point for valuation.

Liquidation value per share is the estimated value of a company’s assets if they were to be sold off. It is typically lower than book value per share, as it does not take into account the value of a company’s going-concern business.

Market value per share is the price at which a company’s shares are currently trading on the stock market. It is a reflection of investors’ expectations about the company’s future prospects.

Tobin’s Q is a measure of a company’s valuation relative to its book value. It is calculated by dividing a company’s market value by its book value. A high Tobin’s Q indicates that investors believe that the company is worth more than its book value.

Exit mobile version