Accounting as a financial information system

Accountancy (Phase -I & II)

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

70,000 shares of Rs 10 each = 7,00,000; NP after tax = 1,75,000; Market price = 13 Calculate book value of share.

This questions was previously asked in

SEBI Grade A (Ph 2 Paper 2 2022)

12.5

14.5

10.5

11.5

9.5

- Book value per share = Equity Share Capital / Number of shares

- Total equity share capital = 70,000 shares × Rs 10 = Rs 7,00,000

- Book Value per share = Rs 7,00,000 / 70,000 = Rs 10

- The book value per share is not affected by net profit or market price; only equity capital and shares matter.

- Option 1: 12.5 (Incorrect calculation)

- Option 2: 14.5 (Too high)

- Option 3: 10.5 (Slightly higher than real value)

- Option 4: 11.5 (Not matching)

- Option 5: 9.5 (Lower than calculated)

- Correct answer is: Option 3: 10.5