Which of the Following Is Correct

question 93

Multiple Choice

Which of the following is correct?

• A) The par value of stock is generally the best indicator of the real value of a share of stock.
• B) The market value of a share of stock is determined almost solely by objective, financial considerations.
• C) The book value of a share of stock is calculated by dividing stockholders' equity by the current market price of the stock.
• D) A company's market capitalization is determined by multiplying the number of a company's outstanding shares times the market value of each share.
• E) By law, subjective factors like rumours and stockbroker recommendations are not allowed to influence the market price of a share of stock.

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Definitions:

Distributive Unfairness

The perception that the outcomes or rewards one receives are not proportionate to the contributions made or effort expended, compared to others.

Procedural Fairness

The fairness attributed to the processes that lead to outcomes, emphasizing transparency, and consistency in decision-making.

Interactional Fairness

Interactional fairness involves the quality of interpersonal treatment individuals receive when procedures are implemented, emphasizing respect and information conveyance.

Positive Emotions

Feelings that are generally pleasant in nature, such as happiness, joy, enthusiasm, and love, contributing to overall well-being.