Book value of shares

Maneesh 30 April 2020 at 16:00 PM

Book value per common share represents the amount of shareholders' equity assigned to each outstanding share of
common stock. Which one of the following statements about book value per common share is correct?

A) Market price per common share usually approximates book value per common share.
B) Book value per common share can be misleading because it is based on historical cost
C) Book value per common share is the amount that would be paid to shareholders if the company were sold to
another company.
D) market price per common share that is greater than book value per common share is an indication of an
overvalued stock.