ACCA FM · Chapter 13 · Question 1 of 9
A company has total assets of $18m, including purchased goodwill of $2m, and total liabilities of $7m. There are 5 million shares in issue. What is the value per share using a net tangible asset basis?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $1.80
Explanation
Net tangible assets = total assets - intangible goodwill - liabilities = 18 - 2 - 7 = $9m. Value per share = $9m / 5m = $1.80. Including goodwill gives $2.20, and ignoring liabilities gives $3.20.
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