Question: Please Answer the questions: 1. What is the difference between book value and market value? Which should we use for decision making purposes? 2. What

Please Answer the questions:

1. What is the difference between book value and market value? Which should we use for decision making purposes?

2. What is the difference between accounting income and cash flow? Which do we need to use when making decisions?

3. What is the difference between average and marginal tax rates? Which should we use when making financial decisions?

4. How do we determine a firms cash flows? What are the equations, and where do we find the information?

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