Book value per share of common stock has no relationship to market value.Group of answer choicesTrueFalse

The statement "Book value per share of common stock has no relationship to market value" is considered False.

Explanation:

1. Book Value: This is the value of a company's equity as recorded on its balance sheet, divided by the number of outstanding shares. It reflects the net asset value of the company.
2. Market Value: This is the price at which a company's stock is trading in the market. It is determined by various factors including company performance, market conditions, and investor sentiment.

While book value and market value can differ significantly, especially for companies with high growth potential or intangible assets, there is often some relationship between the two. Typically, investors may compare book value with market value to assess whether a stock is undervalued or overvalued.

Conclusion:

Thus, while there may be cases where the two values diverge substantially, it is incorrect to say there is no relationship at all.