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NACVA Exam CVA Topic 4 Question 102 Discussion

Actual exam question for NACVA's CVA exam
Question #: 102
Topic #: 4
[All CVA Questions]

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:

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Suggested Answer: A

Contribute your Thoughts:

Angelica
3 months ago
Hmm, this is a tough one. I'm going to have to go with D, anti-dilutives and their effects. Book value is a pretty straightforward calculation, right?
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Val
2 months ago
D) Anti-dilutives and their effects
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Floyd
2 months ago
C) Maximum potential dilution
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Tarra
2 months ago
B) Possible dilutive effects of conversions
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Alline
2 months ago
A) Treasury stock
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Christiane
3 months ago
Haha, this is like a trick question! The answer is clearly A, since treasury stock is not considered in the book value calculation. Easy peasy!
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Mi
2 months ago
User 3: So, the book value per share is based on the number of shares outstanding without considering treasury stock. Got it!
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Junita
2 months ago
User 2: Yeah, that makes sense. Treasury stock is not included in the book value calculation.
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Stefania
3 months ago
User 1: I think the answer is A) Treasury stock.
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Ashlee
4 months ago
Whoa, this question is really testing our understanding of the differences between book value and earnings per share. I'm going with C, maximum potential dilution.
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Josefa
2 months ago
I agree with you, C) Maximum potential dilution seems to be the correct answer.
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Marti
2 months ago
I believe it's B) Possible dilutive effects of conversions.
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Marylou
3 months ago
I think it's A) Treasury stock.
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Alishia
4 months ago
I think the correct answer is B. Book value per share doesn't consider the potential dilutive effects of conversions, unlike earnings per share.
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Hester
2 months ago
Exactly, it's important to understand the differences between book value and earnings per share.
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Solange
2 months ago
So, it doesn't take into account possible dilutive effects of conversions.
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Glenn
2 months ago
I agree, book value per share is based on the number of shares outstanding.
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Zita
3 months ago
I think the correct answer is B.
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Hildegarde
4 months ago
I believe the answer is B) Possible dilutive effects of conversions, as those are not included in computing book value per share.
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Moira
4 months ago
I agree with Tayna, because book value per share does not consider treasury stock.
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Tayna
5 months ago
I think the answer is A) Treasury stock.
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