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Figure 35-2
Use the figure to answer the corresponding questions.
-Which of the following is not true concerning the structure labeled 2 in Figure 35-2?
Book Value
is the net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used in assessing a company's financial health.
Market Value
The ongoing price for buying or selling an asset or service in the market.
Dilution
The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.
Shareholder Value
The value delivered to shareholders due to management's ability to grow earnings, dividends, and share price.
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