Which One of the Following Statements Related to Book Value

question 102

Multiple Choice

Which one of the following statements related to book value per share (BVPS) is correct?

• A)BVPS is equal to total assets divided by the number of shares outstanding.
• B)An increase in the market value of a firm's fixed assets will increase the firm's BVPS.
• C)The payment of a dividend increases BVPS.
• D)BVPS is equal to the market price of a share of stock.
• E)The issuance of new shares at market value may increase the BVPS.

---

Definitions:

Expected Value

The long-run average value of repetitions of an experiment it represents; a fundamental concept in probability and statistics.

Simple Linear Regression

A statistical method that models the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

T-Table Values

Critical values from the t-distribution, used to determine the acceptability of a hypothesis based on the sample data.

Expected Value

The weighted average of all possible values of a random variable, representing the long-term average outcome of a given situation if it were to be repeated many times.