Asked by Vritra Official on May 14, 2024

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Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Book Value Per Share

The financial measure that indicates the per-share value of a company, calculated by dividing total equity minus preferred stock by the number of outstanding shares.

Liquidated

The process of converting assets into cash, usually in the context of dissolving a business or paying off debt.

Balance Sheet

A financial statement that shows a company's financial position at a specific point in time, including assets, liabilities, and shareholder equity.

  • Comprehend the essentials and ramifications of corporate financial statements and shareholder equity.
  • Comprehend the fundamentals governing statutory and contractual limitations and their documentation in financial reports.
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HG
Haley GabelMay 17, 2024
Final Answer :
True
Explanation :
Book value per share is calculated by dividing total shareholders' equity by the number of shares outstanding. It represents the value that shareholders would receive if the company were to be liquidated at the balance sheet amounts. Therefore, the statement is true.