General Studies · Financial Accounting
Which of the following formula is used to calculate the liquidation value per share?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(Amount realised on liquidation of assets + Amount paid to all creditors and preference shareholders) / Total number of equity shares
- 2(Amount realised on liquidation of assets - Amount paid to all creditors and preference shareholders) / Total number of equity shares✓
- 3Amount realised on liquidation of assets / (Amount paid to all creditors and preference shareholders × Total number of equity shares)
- 4(Amount realised on liquidation of assets + Amount paid to all creditors and preference shareholders) × Total number of equity shares
Correct answer
(Amount realised on liquidation of assets - Amount paid to all creditors and preference shareholders) / Total number of equity shares
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