One way for a company to increase its book value per share is to:
A)issue long-term debt.
B)retire long-term debt.
C)increase dividend payout ratio.
D)buy back shares at market prices below their book value.

Question

Quizplus · Accepted Answer

Buying back shares at market prices below their book value reduces the number of outstanding shares, leading to an increase in book value per share. Options A and C are not likely to directly impact book value per share, and option B may actually decrease book value per share if the retired debt was accounted for as an asset on the balance sheet.

One Way for a Company to Increase Its Book Value