Final answer:
The book value per share is determined by dividing total stockholders' equity by the number of shares outstanding, highlighting the actual equity value per share.
Step-by-step explanation:
Book value per share is calculated by dividing the total stockholders' equity by the number of shares of stock outstanding. Therefore, the correct answer to the student's question is:
c. Total stockholders' equity divided by numbers of shares of stock outstanding.
This formula does not take into account the market value or the selling price of the stock, nor does it consider the par value of common stock alone, but rather it assesses the company's actual equity value represented on a per-share basis.Book value per share is measured as:
c. Total stockholders' equity divided by numbers of shares of stock outstanding.
Book value per share is a financial measure that represents the value of a company's common stock. It is calculated by dividing the total stockholders' equity by the number of shares of stock outstanding.