Why is the market value of equity a better measure of an FI's ability to absorb losses

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Why is the market value of equity a better measure of an FI's ability to absorb losses than book value of equity?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:07 AM

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Why is the market value of equity a better measure of an FI's ability to absorb losses

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Hence for final analysis we can say that th...View the full answer

Financial Institutions Management A Risk Management Approach

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