QUESTION 43 A company produced (after-tax) profits $1 billion. If this represents an ROE of 4% its book value must be $25 billion its market value must be $25 billion neither of these both of these QUESTION 44 Which of the following is a false statement concering the market value of a company? All else the same, the higher the ROE expected by investors the greater the market value Market value equals book value plus retained earnings Market value equals price per share multiplied by number of shares Market value is forward looking, book value reflects the past