Question

Coca-Cola recently had a market value of equity of $400 billion with 5 billion shares outstanding. The book value of its equity is $26 billion. a. What is Coca-Cola’s stock price per share? What is its book value per share? Note: Round book value to 2 decimal places.

Answer 1

Coca-Cola's stock price per share is $80, and its book value per share is $5.20.

Step-by-step explanation:

Coca-Cola's Stock Price and Book Value Per Share

The question asks for the calculation of Coca-Cola's stock price per share and its book value per share. To find the stock price per share, we divide the market value of equity by the number of shares outstanding. With a market value of equity of $400 billion and 5 billion shares outstanding, the stock price per share would be:

$400 billion ÷ 5 billion shares = $80 per share

Next, for the book value per share, we divide the book value of equity by the number of shares outstanding. Given a book value of equity of $26 billion:

$26 billion ÷ 5 billion shares = $5.20 per share

Therefore, Coca-Cola's stock price per share is $80, and the book value per share is $5.20.