Book Value Per Share

question 15

Multiple Choice

Book value per share:

• A)Reflects the value per share if a company is liquidated at balance sheet amounts.
• B)Is assets divided by equity.
• C)Is assets divided by the number of common share outstanding.
• D)Measures the worth of assets.
• E)Is equal to par value per share.

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Definitions:

Interest Rates

The expense incurred when taking out a loan, usually represented as a yearly percentage rate of the principal amount.

Quantitative Easing

Fed purchases of long-term assets to stabilize financial markets, reduce long-term interest rates, and improve the investment environment.

Long-Term Assets

Long-term assets are resources owned by a company projected to provide economic value for more than one fiscal year, such as real estate, machinery, and patents.

Interest Rates

The cost of borrowing money or the return on investment for savings, playing a central role in monetary policy and financial decision-making.