The Amount of Owners' Equity Attributable to Each Share of Common

question 30

Multiple Choice

The amount of owners' equity attributable to each share of common stock is known as the:

• A)earnings per share.
• B)book value per share.
• C)market value per share.
• D)preferred value per share.

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Definitions:

Stated Value

The nominal value assigned by a corporation to its issued shares, which might not reflect the market value but is used for internal accounting.

Paid-In Capital

The sum of money contributed by investors through the issuance of common or preferred stocks, counting both the share's nominal value and any excess over that nominal value.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but not retired, held in the company's treasury.

Net Income

Represents the amount of money that remains from revenues after all the firm's expenses, taxes, and costs are subtracted over a specific period.