Respuesta :
Option (b) i.e, Liquidation value per share is the amount of money per common share that could be realized by breaking up the firm, selling its assets, repaying its debt, and distributing the remainder to shareholders.
What is a share?
A share is a unit used in mutual funds, limited partnerships, and real estate investment trusts in the financial markets. The term "share capital" describes all of an organization's shares. A corporation's shareholder is someone who owns shares in the business.
Owners of businesses and other investors are given common shares as evidence of the capital they have invested in a company. Common shareholders have the least claim to a company's assets of any type of shareholder.
Common stock can be a fantastic long-term investment since it enables investors to participate in a company's long-term success. Common stock often entitles holders to vote for corporate directors, as well as for changes to corporate policy and stock splits.
The term "liquidation value" describes how much a company would be valued if its assets were sold. In other words, liquidation value refers to the expected sum of money that will be obtained when the debts of a company are settled and its assets are sold. This amount is frequently expressed as a price per share.
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