How is Share Value calculated?

How is Share Value calculated?

Info
This article is intended for students and instructors.

Notes
This article is for Entrepreneurship, Management and Marketing simulations.

Share values are calculated as follows:

(Shareholders’ equity in the previous year + Undistributed profits) / Number of shares

 

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The number of shares and the share capital remain unchanged throughout the simulation. See the Balance Sheet for more details.