Vidyalelo
Commerce · Q275

Financial Management

Graduate and Post Graduate · Commerce · question 275

Q275

_________ is equal to (common shareholders' equity/common shares outstanding).

A.
book value per share
Answer
B.
liquidation value per share
C.
market value per share
D.
Tobin's Q

Answer: Option A

Solution

Answer: Option A
Solution:
Book value per share is equal to (common shareholders' equity/common shares outstanding). The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity.