Which of the following will increase a company's book value but not necessarily its market value?

a) it makes a profit but pays out no dividends
b) it makes a profit and pays it all out as dividends
c) the price of its shares rises but it does not issue any new shares
d) the price of its shares rises and it issues new shares
e) the price of its shares stays the same and it issues new shares
f) the price of its shares declines and it issues new shares

Answer:
a) it makes a profit but pays out no dividends
d) the price of its shares rises and it issues new shares
e) the price of its shares stays the same and it issues new shares
f) the price of its shares declines and it issues new shares

Business

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