Book Value Per Share

question 27

Multiple Choice

Book value per share:

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

---

Definitions:

Capital Cost Allowance (CCA)

A taxable expense in Canada that allows a business to claim depreciation on capital assets according to the rates prescribed by the Canada Revenue Agency.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

Annual Before Taxes

The total income or earnings generated by an entity during a fiscal year before any tax deductions.

Tax Rate

The degree of governmental claim on the earnings or profit of people and companies through taxation.