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