32. The book value of a company can be defined by: The difference between assets and liabilities Net working capital The debt/equity ratio The stock price per share A. B. C. D. 33. Book value is not considered a very good indicator of the value of a company because A. Fixed assets are expressed at historical costs less depreciation 8. Intangible costs may not be recorded at all C. Land is expressed at historical cost D. Inventory is expressed at lower of cost or market E. All the above F. None of the above 34. The Price/Earnings ratio is a very important measurement to investors. What two factors are considered in its calculation? A Total inventory and Earnings per share B. Book value and Market Value C. Earnings per share and stock price D. Beta and dividend yield 35. Assume the price of a share of stock at the beginning of the year to be $49.43. At the end of the year a dividend of $2.00/share is paid. What is the dividend yield? C. 1.4% D. 5.2% 36. The payout ratio is the portion of earnings that are paid out to shareholders. What is the term given for the inverse of the payout ratio? A. Current ratio B. Earnings per share C. Dividend Yield D. Plowback ratio