Chapter 13, Problem 9BTN

To determine

Concept Introduction:

Book Value per share:

Book value per share can be defined as the book value of each common share i.e. shareholder’s equity that can be associated with each common share.

It is calculated as under $–$

$BookValuepershare=\frac{Ttalshareholder\text{'}sequity}{CommonStockOutsts\tan ding}$

Earnings per share:

Earnings per share can be defined as the net income that which is attributable to each common share. It is the net income earned by each common stock outstanding.

It is calculated as under $–$

$BasicEPS=\frac{NetIncome}{WeightedAverageCommonStock}$

Requirement 1

To determine:

Book value per share for Samsung

To determine

Requirement 2

To compute:

Basic EPS for each company

To determine

Requirement 3

To compare:

Dividend per share with its EPS