Explore BrainMass

Explore BrainMass

    Jim and Mary's Inc stock: What is book value, over or under

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jim and Mary's Inc. stock currently sells for $75 per share. The firm has total assets of $1,000,000 and total liabilities, including preferred stock, of $350,000. If the firm has 10,000 shares of common stock outstanding.

    a) What is the book value of each share of common stock?
    b) Is the stock overvalued or undervalued?
    c) What might be the reason for your answer in (b).

    © BrainMass Inc. brainmass.com June 4, 2020, 1:36 am ad1c9bdddf

    Solution Preview

    a. equity = 1000,000-350,000= 650,000
    book value per share = (equity- ...

    Solution Summary

    The expert determines the book value for stocks.