One Way for a Company to Increase Its Book Value

question 29

Multiple Choice

One way for a company to increase its book value per share is to:

• A)issue long-term debt.
• B)retire long-term debt.
• C)increase dividend payout ratio.
• D)buy back shares at market prices below their book value.

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Definitions:

Cash Flow Ratios

Financial metrics used to assess how efficiently a company generates cash to pay its debt obligations and fund its operating expenses.

Operations to Sales

A financial ratio used to analyze a company's operational efficiency by comparing its operating income to its net sales.

Operations to Net Income

An analysis or measure that illustrates how operating activities contribute to a company's net income.

Intracompany Comparisons

Intracompany comparisons involve analyzing the financial performance and operational efficiencies within different segments or departments of the same company.