Asked by Tiffany McClendon on May 22, 2024
Verified
_______ is the amount of money per common share that could be realized by breaking up the firm, selling the assets, repaying the debt, and distributing the remainder to shareholders.
A) Book value per share
B) Liquidation value per share
C) Market value per share
D) Tobin's Q
Liquidation Value
Net amount that could be realized by selling the assets of a firm after paying the debt.
Common Share
A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profit through dividends and/or capital appreciation.
- Compute and elucidate the book value per share, understand its importance, and conduct comparisons with market and liquidation values.
Verified Answer
EP
Erika PedrazaMay 22, 2024
Final Answer :
B
Explanation :
Liquidation value per share is the amount of money per common share that could be realized by breaking up the firm, selling the assets, repaying the debt, and distributing the remainder to shareholders.
Learning Objectives
- Compute and elucidate the book value per share, understand its importance, and conduct comparisons with market and liquidation values.
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