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Management · Q262

Financial Management

Graduate and Post Graduate · Management · question 262

Q262

The growth in book value per share shows the_____________.

A.
rise in share price
B.
increase in physical asset of the firm
C.
increase in net worth
D.
growth in reserves
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The growth in book value per share shows the growth in reserves. Book value of equity per share indicates a firm's net asset value (total assets - total liabilities) on a per-share basis.