7252569-MIdterm-1 (dragged) 46

7252569-MIdterm-1 (dragged) 46 - Kieso, Weygandt, Warfield,...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 15-12 c. Price earnings ratio : The analyst, in discussing the investment possibility of a given enterprise, mostly uses this ratio. It is calculated as follows: market price per share/earnings per share. d. Book value per share: The book value per share is the amount each share would receive if the company were liquidated on the basis of amounts reported on the balance sheet. This is calculated as follows: common shareholders’ equity/number of outstanding shares. International Perspective 42. Canadian standards related to shareholders’ equity are largely converged with those of the IASB. Par Value Shares-Appendix 15A 43. Par value is an amount stated as such on each share certificate. This establishes the nominal value per share and is the minimum amount that must be paid by each shareholder if the share is to be fully paid when issued. Shares issued for more than par value are said to be issued at a
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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