passwella.
Menu

JAMB Principles of Accounts 1999 Question 37

Question 37

Company Accounts

The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its

  1. A.earnings per share
  2. B.redemption price per share
  3. C.book value per share
  4. D.call price per share.
Show the answer and explanation

Answer: A (earnings per share)

Explanation

Investors value shares by the profit they earn, so market price follows earnings per share.