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JAMB Principles of Accounts 2009 Question 46

Question 46

Interpretation of Accounts

The book value per share is obtained by dividing

  1. A.shareholders equity by outstanding shares
  2. B.total assets by outstanding shares
  3. C.gross profit by outstanding shares
  4. D.net profit by outstanding shares
Show the answer and explanation

Answer: A (shareholders equity by outstanding shares)

Explanation

Book value per share = shareholders' equity ÷ number of shares in issue.