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.

  1. 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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