Book Value Per Share Quiz

An arbitrary value that the company gives the stock in its articles of incorporations.

Book value per share quiz. On july 1 2009 salt company exchanged a truck for 25 000 ordinary shares of alas company. Book value per share is 10. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.

Thinkingoutloud company reported the following shareholders equity at year end. The preferred dividend claim must include any liquidation preference in this case 50 000 in premium plus the par value plus the dividends in. Liabilities and stockholders equity.

A 10 stock dividend will increase the book value per. 4 000 160 380 10 11. Book value per share has increased.

An arbitrary accounting value. Explore answers and all related questions. 5 cumulative preference share capital par value p100 per share 25 000 shares issued and outstanding 2 500 000 ordinary share capital par value p35 per share 100 000 shares issued and outstanding 3 500 000 share premium 1 250 000 retained earnings 3 000 000 dividends in.

If 10 shares were repurchased for 8 which is less than the original book value per share the new book value would be 920 and the reduced number of shares would be 90 thus resulting in a new book value per common share of 10 22 which is larger than the original 10. A stock s book value per share is a measure of how much a common stockholder could expect to receive for each share if the corporation were liquidated. On december 31 2009 alas had 250 000 ordinary shares outstanding and its book value per share was p50.

Hypothetical net worth of each share of common stock. Book value of equity per share effectively indicates a firm s net asset value total assets total liabilities on a per share basis. The new book value per share is.