Which one of the following statements about book value per share is most correct?
A. Book value per common share is the amount that would be paid to stockholders if the company were sold to another company.
B. Book value per common share is based on past transactions whereas the market price of a share of stock mainly reflects what investors expect to happen in the future.
C. A market price per common share that is greater than book value per common share is an indication of an overvalued stock.
D. Market price per common share usually approximates book value per common share.
Answer: B
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A firm uses cash to _____ These amounts appear as cash flow from financing activities in the statement of cash flows
a. pay dividends to shareholders b. repay borrowing c. reacquire outstanding common shares d. reacquire outstanding preferred shares e. all of the above
On the statement of cash flows, the cash flows from financing activities section would include
A) receipts from the sale of investments B) payments for the acquisition of investments C) receipts from a note receivable D) receipts from the issuance of capital stock
English-speaking readers typically start scanning at the top right side of the main content area of a website
Indicate whether the statement is true or false
Which of the following types of decisions involves deciding whether to sell a product as is or continue to refine it so that it can be sold at a higher price?
A. Continue-or-discontinue B. Sell-or-process further C. Make-or-buy D. Special-order