Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free ra
1 answer:
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Answer:
Statements A and C are correct.
Explanation:
- Book Value per share is the value shown in the balance sheet, which is calculated by:
Formula:
After putting values in the formula we get:
- Market value per share is calculated on the bases of prices of share according to the market. For example, if your company has $10000 share outstanding and the price in market per share is 50 then the market value would be $500000.
So, we have to calculate market value per share for that we have to reverse the actual calculation, which means we will have to divide total market value of outstanding shares by the total number of outstanding shares to get market value per share:
<em>Hence, statement A and C both are correct. </em>