Barr, Inc. reports ₤4,000,000 of share capital, and ₤6,000,000 of share premium on its statement of financial position. The number of ordinary shares issued and outstanding is 400,000 shares. The book value per share is

Question

Quizplus · Accepted Answer

The book value per share is calculated by dividing the total equity (share capital + share premium) by the number of shares outstanding. ₤4,000,000 + ₤6,000,000 = ₤10,000,000 total equity. ₤10,000,000 / 400,000 shares = ₤25 per share.

Barr, Inc Reports ₤4,000,000 of Share Capital, and ₤6,000,000 of Share