Question

This Question: 1 pt 13 of 40 (o complete) r, the market value of Wonderlands stock is $64 million. This me O A. O B. C. O D. the market thinks the company is overvalued the company is not reporting its assets correctly on the Balance Sheet the market thinks the company is worth over three times what the Balance Sheet reports. the CEO should get a raise.

Answer 1

Here answer is c

Here the market thinks that the company is worth over three times what the balance sheet reports

it may happen so because market worth of the company is affected by many other factors like product image, goodwill in the market, earning capacity, customers loyalty, stakeholders, management etc etc these all factors jointly affect the market worth of the company and investors in the market on the basis of these factors decide what the worth of company actually is, so not only considering the book value....market value may be less or more...market value is  the actual worth of the company as in present case market value is $64 million which is around three times more than book value of $20 million

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