Question: What's the difference between book and market value? 1 ) Book value is equal to market value, while market value is equal to discount price.

What's the difference between book and market value?
1) Book value is equal to market value, while market value is equal to discount price.
2) Book value is what the firm paid for an asset, while market value is the price the firm can sell an asset 3) BOOK value is what a firm can sell any asset for, while market value is how much competitors pay for an asset.
4) Book value is always $100, while market value constantly changes.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

36) What's the difference between book and market value? A) Book Value is what a firm can sell any asset for, market value is how much competitors pay for an asset B) Book value is what the firm paid...

Q:

50 ) The Past five monthly returns for company A's stock are 3.28 percent, 4. 32 Percent, 35 percent, 2-9 percent/ and 2.5 percent . What's the average monthly return over those s se six months ? A )...

Q:

Hello, I am finishing a portfolio project and needed a little help withthe valuation of the company. We have chose Allergan PLC (NYSE: AGN).We will use the discounted Free Cash Flow.First wehave to...

Q:

please show all the working and formulas used..... Valuing a Business Sangria is a U.S.-based company whose products aim to promote happy, low-stress lifestyles. The book and market value balance...

Q:

Match the definition with the term. 1). Capital Structure 2). Capital Budgeting 3). Working Capital 5). Agency Problem Balance Sheet 9). Liquidity 10). Income Statement 11). Average tax rate 12)....

Q:

Net present value (NPV) is the difference between an investment's market value and its cost. True or False The average accounting return (AAR) is determined by dividing an investment's average net...

Q:

This question concerns Alibaba the internet e-commerce firm that recently went public. It is an open ended question that requires you to utilize the valuation techniques you have learnt in the course...

Q:

1. The amount that is originally borrowed or the amount that is repaid when the bond mature is due is known as ___________ .A) Indenture. B) Par value. C) Principal amount. D) Maturity value. E) B,...

Q:

RMIT Classification: Trusted Financial Statement Analysis_BAFI1070_Final individual Assignment (2020 Semester 2) (40 Marks) Please directly write your answers to each question in each Case in a Word...

Q:

Exercise 1- Bond A is a 10-year U.S. Treasury bond. Bond B is a 10-year corporate bond. State whether the following statements are true or false? a. If you hold bond A to maturity, your return will...

Q:

What are the advantages and disadvantages of exchange-traded funds versus mutual funds?

Q:

The following information is available for Alayna and Beau Nicky, a married couple filing a joint return, for 2021. Both Alayna and Beau are age 32 and have no dependents. Alaynas Salary $120,000...

Q:

Review the following code: $var 1 = 6 ; $var 2 = 8 ; $var 3 = 0 ; $var 7 = 1 5 ; Which of the following statements is true? $total = $var 2 * $var 3 will equate to 0 . The semicolon is not needed....

Q:

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

Q:

Prepare effective negative messages for a variety of purposes using the direct plan.

Q:

Write different kinds of persuasive messages using the indirect plan.

Q:

Distinguish between formal and informal reports.