Book Value Per Ordinary Share Is Computed By

question 51

Multiple Choice

Book value per ordinary share is computed by:

• A) Multiplying the number of ordinary shares outstanding times the market price per common share.
• B) Dividing total assets by the number of shares outstanding.
• C) Dividing shareholders' equity applicable to ordinary shares by the number of ordinary shares outstanding.
• D) Multiplying the number of ordinary shares outstanding by par value per share.
• E) Dividing the number of ordinary shares outstanding by shareholders' equity applicable to ordinary shares.

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Definitions:

Synergistic Increases

Enhancements in value or performance achieved through the combination or cooperation of different entities, surpassing what would be possible individually.

Value

The importance, worth, or usefulness of something, often in economic terms.

Surplus Funds

Excess funds that are not needed for immediate expenses and can be invested or saved for future use.

Tax Gains

Profit that arises from the sale of an asset or investment which is subject to taxation.