Book Value Per Share May Not Approximate Market Value Per

question 13

Multiple Choice

Book value per share may not approximate market value per share because:

• A)the book value is after tax.
• B)book values are based on replacement costs rather than market values.
• C)book value is related to book figures and market value is related to the future potential as seen by investors.
• D)investors do not understand book value.
• E)book value is not related to dividends.

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Definitions:

Tangibles

Physical items or properties that can be seen, touched, and measured, as opposed to intangible assets like patents or copyrights.

Reliability

The degree to which a system, component, or process consistently performs according to its intended or designed function.

Manufacturing-Based Quality

Manufacturing-based quality focuses on ensuring that a product or service meets a specified standard during the manufacturing or production process.

Design Specifications

Detailed descriptions of the characteristics that a product or project must meet.