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:

Inverse Relationship

An inverse relationship is a connection between two variables where one increases as the other decreases.

Physical Properties

Characteristics of a material or substance that can be observed or measured without changing its identity, such as density, color, or melting point.

Eidetic Memory

Eidetic memory is the ability to recall images, sounds, or objects in memory with high precision for a short period after only seeing them once without using mnemonic devices.

Cueing

The process of prompting or signaling to elicit a specific response or action; often used in memory recall and learning strategies.