Asked by Jared Myers on Jun 05, 2024
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Weyerhaeuser Incorporated has a balance sheet that lists $70 million in assets, $45 million in liabilities, and $25 million in common shareholders' equity. It has 1 million common shares outstanding. The replacement cost of its assets is $85 million. Its share price in the market is $49. Its book value per share is ________.
A) $16.67
B) $25
C) $37.50
D) $40.83
Common Shareholders' Equity
The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts paid off.
Replacement Cost
The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.
Book Value Per Share
A financial measure that calculates the per share value of a company based on common shareholders' equity in the business.
- Appraise and describe the Price-Earnings (P/E) ratios and their dependence on a range of factors.
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Learning Objectives
- Appraise and describe the Price-Earnings (P/E) ratios and their dependence on a range of factors.
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