When Market Value Is Below Book Value,this Relationship Indicates That

question 36

True/False

When market value is below book value,this relationship indicates that the investors view the company as having strong future potential.

---

Definitions:

Liquidating Dividend

A type of payment made by a corporation to its shareholders during its liquidation or dissolution, often representing the return of capital rather than profit.

Special Dividend

A one-time payment made by a company to its shareholders, often issued in response to exceptionally strong earnings or when a large amount of excess cash is on hand.