Free ABV Exam Braindumps (page: 31)

Page 30 of 87

Continuing the above example, if earnings were $30, 000, earning per share would be:

  1. $2.50
  2. $3.00
  3. $4.00
  4. $2.25

Answer(s): A



Book value per share is based on the number of shares outstanding at the end of accounting period rather than the weighted average used in computing earning per share. Also, book value normally is computed without considering:

  1. Treasury stock
  2. Possible dilutive effects of conversions
  3. Maximum potential dilution
  4. Anti-dilutives and their effects

Answer(s): B



Situations commonly requiring the valuation of option are all of the following EXCEPT:

  1. When the option is designed, granted exchanged, or terminated
  2. When financial statement disclosure requires that the option value is recognized
  3. When the option value is at issue in a damage suit, such as a breach of contract suit between an existing or former executive and the issuing company
  4. When the option is a repurchased option by the OTC market

Answer(s): D



__________is common stock received when the option is exercised.

  1. Underlying stock
  2. American option
  3. European option
  4. Strike

Answer(s): A






Post your Comments and Discuss Financial ABV exam with other Community members:

ABV Discussions & Posts