Which of the Following Is Correct with Respect to the Value

Multiple Choice

Which of the following is correct with respect to the value of a share of common stock?

A) The par value is generally the best indicator of the real value of a share of stock.
B) The market value of a share of stock is determined by objective,financial considerations.
C) The book value of a share of stock is calculated by dividing shareholders' equity by the current market price of the stock.
D) A company's market capitalization is determined by multiplying the number of a company's outstanding shares times the market value of each share.
E) By law,subjective factors like rumours and stockbroker recommendations are not allowed to influence the market price of a share of stock.