Question: Book value per share may not approximate market value per share because (PICK THE ONE BEST ANSWER): a. the book value is after tax. b.
- Book value per share may not approximate market value per share because (PICK THE ONE BEST ANSWER):
| a. | the book value is after tax. |
| b. | book values are based on replacement costs rather than market values. |
| c. | book value is related to book figures and market value is related to the future potential as seen by investors. |
| d. | investors do not understand book value. |
| e. | book value is not related to dividends. |
2. True or False?
Unlike interest payments on debt, dividends - payable to shareholders based on their ownership of shares - are tax deductible at the federal tax level by the Corporation paying the dividends.
A. True
B. False
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