Question

In: Finance

iF the number of shares is 20000 at what roice per share would the MVA be...

iF the number of shares is 20000 at what roice per share would the MVA be equal to zero?

Solutions

Expert Solution

MVA = Market Value of Shares – Book Value of Shareholders’ Equity

Market Value of Shares = Markt Value of share*number of shares

{There shares include the common, preferred shares as well}

Book Value of Shareholder's Equity = Book Value of shareholder's equity.

So to MVA to e equal to Zero:- Market value of 20000 shares = Book Value of 20000 shares

So, MVA would be Zero at he price equal to Book Value


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