Answer:
I would explaining how to calculate the book value per share (BVPS) for Roxie’s Bed & Breakfast Corp. The formula for BVPS is:
BVPS=fractextTotalEquity−textPreferredEquitytextTotalSharesOutstanding
To answer your question, we need to find the values of these variables from the given information. We can use the following steps:
Total equity is equal to the common stockholders’ equity, which is given as $46.0 million.
Preferred equity is not given, so we assume it is zero.
Total shares outstanding is given as 20 million shares.
Plugging these values into the formula, we get:
BVPS=frac46.0−020=2.3
Therefore, Roxie’s Bed & Breakfast’s book value per share is $2.30
Step-by-step explanation:
I hope this helps