Question: When Accounting Information is not Enough Attempt #1 20 points Instructions Book value per share is the accounting value of one share of stock in

When Accounting Information is not Enough

Attempt #1

20 points

Instructions

Book value per share is the accounting value of one share of stock in a corporation. Market value is the approximate price one share of stock could be purchased or sold for in the stock market. These two values rarely are the same and may be significantly different. With that, additional non-accounting information may be required to make an effective business decision.

Research the following companies to explain the differences between book value and market value per share. Identify and properly cite the additional information used to inform your explanation. News articles, investment reports and financial statements should be good sources. Be sure to watch for negative values.

Company 1

Coca Cola (KO)
Book Value per Share Market Value per Share
$4.62 $44.25

Source: "Coca Cola Price to Book Ratio 2006-2020." Data is as of March 31, 2020. Retrieved fromhttps://www.macrotrends.net/stocks/charts/KO/coca-cola/price-book.

Company 2

Home Depot (HD)
Book Value per Share Market Value per Share
-$3.24 $219.83

Source: "Home Depot Price to Book Ratio 2006-2020." Data is as of April 30, 2020. Retrieved fromhttps://www.macrotrends.net/stocks/charts/HD/home-depot/price-book.

References

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