You have a friend who is considering purchasing some shares in LookFool Ltd. The shares are currently trading on the stock exchange at $3.58 each. The entity's financial statements suggest that the entity's net assets are $250 000 and there are 150 000 shares on issue, giving a book value per share of $1.67. Your friend is confused as to why the financial statements do not reflect the measure of the entity's value. Explain this to your friend.