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Author Question: Use the table for the question(s) below.Balance SheetAssetsLiabilitiesCurrent AssetsCurrent ... (Read 106 times)

james9437

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Use the table for the question(s) below.

Balance Sheet
AssetsLiabilities
Current AssetsCurrent Liabilities
Cash 50 Accounts payable 42
Accounts receivable22 Notes payable/short-term debt 7
Inventories 17
Total current assets 89Total current liabilities 49
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment121Long-term debt 128
Total long-term assets 121 Total long-term liabilities 128
Total Liabilities 177
Stockholders' Equity 33
Total Assets 210Total Liabilities and210
Stockholders' Equity


The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars.  If the company has 4 million shares outstanding, and these shares are trading at a price of $8.24 per share, what does this tell you about how investors view this firm's book value?
◦ Investors consider that the firm's market value and its book value are roughly equivalent.
◦ Investors consider that the firm's market value is worth more than its book value.
◦ Investors consider that the firm's market value is worth less than its book value.
◦ Investors consider that the firm's market value is worth very much less than its book value.


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Marked as best answer by james9437 on Jul 9, 2019

Anonymous

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