Book Value Per Share Quiz

On july 1 2009 salt company exchanged a truck for 25 000 ordinary shares of alas company.

Book value per share quiz. Explore answers and all related questions. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company. Also the book value of alas share was p60.

If 10 shares were repurchased for 8 which is less than the original book value per share the new book value would be 920 and the reduced number of shares would be 90 thus resulting in a new book value per common share of 10 22 which is larger than the original 10. Quiz book value per share 1. Book value per share of common stock is the portion of owners equity that would remain for common shareholders after the preferred claim was paid divided by the number of common shares outstanding.

On that date the truck s carrying amount was p2 500 000 and its fair value was p3 000 000. Thinkingoutloud company reported the following shareholders equity at year end. For example if book value were 1 000 and there were 100 common shares the book value per common share would be 10.

When a stock is undervalued it will have a higher book value. A 10 stock dividend will increase the book value per. A stock s book value per share is a measure of how much a common stockholder could expect to receive for each share if the corporation were liquidated.

Book value per share is 10. Hypothetical net worth of each share of common stock. The firm purchases 20 shares of treasury stock for 8 less than book value.

The new book value per share is. 5 cumulative preference share capital par value p100 per share 25 000 shares issued and outstanding 2 500 000 ordinary share capital par value p35 per share 100 000 shares issued and outstanding 3 500 000 share premium 1 250 000 retained earnings 3 000 000 dividends in. An arbitrary accounting value.