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QUESTION 7 Book value per share may not approximate market value per share because O Investments may have a market value substantially above the original

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QUESTION 7 Book value per share may not approximate market value per share because O Investments may have a market value substantially above the original cost O Land may have substantially increased in value Market value reflects future potential earning power O All of the above QUESTION 8 Increasing financial leverage can be a risky strategy from the viewpoint of stockholders of companies having Steady and high profits Low and falling profits Relatively high and increasing profits A low debtl/equity ratio and relatively high profits

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