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Author Question: What is the main problem in using a balance sheet to provide an accurate assessment of the value of ... (Read 109 times)

itsmyluck

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on: Jul 9, 2019
What is the main problem in using a balance sheet to provide an accurate assessment of the value of a company's equity?
◦ The balance sheet does not accurately represent the book value of assets held by the company.
◦ Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
◦ Knowing at a single point in time what assets a firm possesses and the liabilities a firm owes does not give any indication of what those assets can produce in the future.
◦ The equity shown on the balance sheet does not reflect the market capitalization of the company.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by itsmyluck on Jul 9, 2019

lgoldst9

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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itsmyluck

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Reply #2 on: Jul 9, 2019
Thank you!


lgoldst9

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Reply #3 on: Jul 9, 2019
Always glad to help...


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