Book Value Per Share

question 119

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 shares outstanding.
• D)Measures the worth of assets.
• E)Is equal to par value per share.

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Definitions:

Present Value

The modern-day valuation of upcoming money amounts or cash flow sequences, adjusted according to a given rate of return.

Bank Account

A financial account maintained by a bank for a customer, allowing the customer to deposit and withdraw money and possibly earn interest.

Equal Payments

Installments of the same amount paid or received over a specified period for loans, mortgages, or annuities.

Present Value

Today's monetary value of a sum to be received in the future or of future cash inflows, using a specified rate of return for calculation.