Why do think the shares are still trading so much book value

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The 2021 Financial Statements for Blackberry shares are dated February 28, 2021 and show 565,505,328 voting common shares are outstanding with a book value of $2,823 Million US dollars (an average of $5 US/share). It also shows an accumulated deficit of $1,319 Million in Retained Earnings, leaving a book value of $1,504 Million US or $2.66 per share. Since this represents the net book value of the company available to distribute to shareholders, it may seem strange that the shares have traded between $12.70 and 14.75 in July.

Problem 1: Why do you think the shares are still trading so much above the book value that the company statements would indicate?

Reference no: EM132969842

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