A company is valued at $100,000,000 and has 5,000,000 shares of stock.
What is the value of each share?
$20 per share
Nick got that (I assume) by dividing $100,000,000 by 5,000,000, so you know the process.
To calculate the value of each share, you need to divide the total company valuation by the number of shares.
In this case:
Value of each share = Company valuation / Number of shares
Value of each share = $100,000,000 / 5,000,000
Value of each share = $20
Therefore, the value of each share is $20.
To find the value of each share, you need to divide the total value of the company by the number of shares outstanding.
In this case, the total value of the company is given as $100,000,000, and the number of shares of stock is 5,000,000.
To calculate the value of each share, you can use the following formula:
Value of each share = Total value of the company / Number of shares
Substituting the given values into the formula:
Value of each share = $100,000,000 / 5,000,000
Simplifying the division:
Value of each share = $20
Therefore, the value of each share in the company is $20.