Sona International has assets of $250 million, liabilities of $200 million and preference shares valued at $20 million. There are 1,500,000 ordinary shares in Sona International. The market price of the shares is $30. Jena is interested in knowing the (i) Book value, (ii) Book value per share, and (iii) Price to book value ratio of Sona International. Discuss the benefits and limitations of fundamental analysis.

Sona International has assets of $250 million, liabilities of $200 million and preference shares valued at $20 million. There are 1,500,000 ordinary shares in Sona International. The market price of the shares is $30. Jena is interested in knowing the (i) Book value, (ii) Book value per share, and (iii) Price to book value ratio of Sona International. Discuss the benefits and limitations of fundamental analysis.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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