Question

Weyerhaeuser Incorporated has a balance sheet that lists $81 million in assets, $53 million in liabilities, and $28 million in common shareholders' equity. It has 1 million common shares outstanding. The replacement cost of its assets is $95 million. Its share price in the market is $47. Its book value per share is _________.

Answer 1

Book value per share is $28 per share

Step-by-step explanation:

The book value of a share is arrived at by dividing the total number of shares by the net book value of its net assets. Note that this method of share valuation is based on the historical cost concept.

Book value per share = Net assets/Number of shares

Net assets = total assets - total liabilities

DATA:

total assets- 81 million

Total liabilities - $53 million

Number of shares - 1 million units

Net Assets = $81 million - $53 million= $28 million

Book value per share = Net assets/Number of shares

=$28 million/1 million units

= $28 per share

Book value per share is $28 per share