A Company Has 1,000 $100 Par Preference Shares

question 34

Multiple Choice

A company has 1,000 $100 par preference shares. It also has 25,000 ordinary shares outstanding, and its total shareholders' equity equals $500,000. The book value per ordinary share is:

• A) $15.38.
• B) $16.00.
• C) $19.96.
• D) $20.00.
• E) $100.00.

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Definitions:

Quality Training

Educational programs or sessions aimed at enhancing the skills and knowledge of employees to maintain or improve product or service quality.

Quality Costs

Expenses associated with preventing, detecting, and correcting defective work in products or services.

Quality Cost Report

A quality cost report compiles all expenses related to ensuring products or services meet quality standards, including prevention, appraisal, and failure costs.

External Failure

The costs incurred when a product fails to meet quality standards after it has been delivered to the customer, including returns, repairs, and lost sales.