Part c iii
For Total Equity why don't we add reserve?
Ask the Tutor ACCA FM
q: Burse Co june 2008
12y ago#1The reason the market value of shares is normally going to be higher than the nominal value of the shares is because it already includes the reserves. Although many factors affect the share price, the fact that the company has reserves is the most obvious reason of all that you would expect the share price to be higher than nominal.
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