How to Divide Billion from million?

Question

I am trying to find out book value per share for 6 billion common equity and 8 million share outstanding. In U.S.

I did 6,000,000,000 / 8,000,000 i am getting 750. which isn't right
I am suppose to get 7.50 as a stock value per share.

What am I doing wrong here?

Answer 1

If the book value of the firm is $6,000,000,000
And the number of shares outstanding is 8,000,000

Then the value per share is $750

Assuming the number of share o/s is actually 8,000,000, then the book value of the firm would have to be $60,000,000 to get a per share value of $7.50

EDIT: I just thought of something... does the question state how many "common shares" there are? Ie. are there both common and preferred shares? If so, you just want to use the number of common shares outstanding as it's the common equity value that you're using.