Session 14: Equity Analysis and Valuation
Reading 58: Overview of Equity Securities
LOS h: Distinguish between the market value and book value of equity securities.
Pearl River Heavy Industries shows the following information in its financial statements:
| Total Assets |
HK$146,000,000 |
| Total Liabilities |
HK$87,000,000 |
| Net Income |
HK$27,000,000 |
| Price per Share |
HK$312 |
| Shares Outstanding |
200,000 |
The equity securities of Pearl River have a:
|
A) |
book value of HK$62,400,000. | |
|
B) |
market value of HK$146,000,000. | |
|
C) |
book value of HK$59,000,000. | |
Book value = Total assets ? total liabilities = 146,000,000 ? 87,000,000 = HK$59,000,000
Market value of equity = Market price per share × shares outstanding = HK$312 × 200,000 = HK$62,400,000
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发表于 2011-3-30 11:20
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