a firms market value is usually greater than book value: (choose 1)
For most firms, market value is usually greater than book value. True or False
Which statements are true about book value (BV) and market value (MV)? Check all that apply: The BV of debt is usually greater than the MV of debt. The BV of debt is usually similar to the MV of debt. The BV of equity is usually greater than the MV of equity. The BV of equity is usually less than the MV of equity.
(Market vs Book). Assume a firm is facing near certain bankruptcy. Which is greater? Market value equals book value Book value of total assets Market value of equity
1-If the fair value of a stock is greater than its market value, it means that: A. The stock has a low level of risk B. The stock offers a high dividend C. The market is undervaluing the stock. D. The market is overvaluing the stock 2-A profitability index of .85 for a project means that: A-The present value of benefits is 85% greater than the project's costs. B. The project's NPV is greater than zero. C. The project returns...
if a company market to book ratio is less than 1 ,the market value added must be negative - true or false
Are the following statements true? Statement 1: The Fama and French evidence that high book-to-market firms outperform low book-to-market firms even after adjusting for beta means that either high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor. Statement 2: Assume that a company announces unexpectedly high earnings in a particular quarter. In an efficient market one might expect an abnormal price change immediately after the announcement. A. Yes. B. No. Both are...
Consider the Keynesian cross. If output is greater than planned spending, then A) firms will raise production B) GDP will fall as the market corrects itself over time C) firms will likely hire new workers D) economic investment will rise
how is the sale of equipment at an amount greater than its book value recorded? How would the answer change if the equipment is sold at an amount less than its book value?
Question 1 (1 point) Why is the market value of equity (stock) in a firm with great future opportunities more than the book value of its equity? Choose all that are correct. Investors expect the firm to generate cash for equity holders that far exceed the purchase price of the firm's assets financed by equity. The resale (liquidation) values of assets (like an assembly plant) are greater than the market value of assets U The firm's opportunities are expected to...
Consolidation entries at date of acquisition (purchase price greater than book value) A parent company exchanges 30,000 shares of its $1 par value common stock, with a market value of $10/share, for all of the shares owned by the subsidiary's shareholders, resulting in a $300,000 total purchase price. On the acquisition date, the subsidiary reported a book value of Stockholders' Equity of $225,000, comprised of $90,000 of Common Stock and $135,000 of Retained Earnings. An examination of the subsidiary's balance...