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Shener Software's current balance sheet shows total common equity of $100,000,000. The company has 5,000,000 shares...

Shener Software's current balance sheet shows total common equity of $100,000,000. The company has 5,000,000 shares of stock outstanding, and they sell at a price of $200 per share. By how much do the firm's market and book values per share differ?

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Answer #1

Market Value = Number of Shares * Price Per share

=  5,000,000 shares * $200 per share

= $ 1,000,000,000

Book Value = $100,000,000

Difference = Market Value - Book Value

= $ 900,000,000

Hence the correct answer is $ 900,000,000

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