The Book Value of Ordinary Shares Is Equal to the Total

question 59

True/False

The book value of ordinary shares is equal to the total equity less the book value of preference shares,divided by the number of ordinary shares outstanding.

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Definitions:

Economic Models

Simplified representations of complex economic processes, used to predict economic variables and understand their interactions.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Assumptions

Premises or conditions accepted as true without proof, used as the basis for reasoning, discussion, or calculation.

Simplify

The process of making something less complex or easier to understand by reducing it to its basic components.