Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
bartleby

Videos

Question
Book Icon
Chapter 2, Problem 23P
Summary Introduction

To calculate:The book value per share of Landers Nursery and Garden Stores.

Introduction:

Book value per share:

It is a metric used by investors to know whether the price of a share is undervalued or overvalued by comparing it to the market value per share. If a company’s book value per share is lower than the market value per share, its stock is overvalued and, if the book value per share is higher than the market value per share, the stock is undervalued.

Blurred answer
Students have asked these similar questions
Landers Nursery and Garden Stores has current assets of $220,000 and fixed assets of $170,000. Current liabilities are $80,000 and long-term liabilities are $140,000. There is $40,000 in preferred stock outstanding and the firm has issued 25,000 shares of common stock. Compute book value (net worth) per share.
Landers Nursery and Garden Stores has current assets of $319,000 and fixed assets of $225,000. Current liabilities are $112,000 and long-term liabilities are $179,000. There is $40,000 in preferred stock outstanding and the firm has issued 25,000 shares of common stock.
The Holtzman Corporation has assets of $441,000, current liabilities of $105,000, and long-term liabilities of $147,000. There is $31,500 in preferred stock outstanding; 24,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)

Chapter 2 Solutions

Foundations of Financial Management

Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Investing For Beginners (Stock Market); Author: Daniel Pronk;https://www.youtube.com/watch?v=6Jkdpgc407M;License: Standard Youtube License