Question: please help. will like Why mustn't we choose the book value over the market value of debt and equity? Because the market values are the

please help. will like please help. will like Why mustn't we choose the book value over

Why mustn't we choose the book value over the market value of debt and equity? Because the market values are the values at which debt and equity are carried on a balance sheet. The historical cost functions of both are similar. Because the market values are the values at which debt and equity are traded in the financial markets There is no difference between the two, since the intrinsic values of debt and equity are similar. Because the par values of common stock and the maturity values of debt are similarly derived

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