Which of the following is least likely to account for an excess of market value over book value of equity?
A)inaccurate depreciation methods
B)high rate of return on assets
C)the presence of growth opportunities.
D)valuable off-balance sheet assets

Question

Quizplus · Accepted Answer

Inaccurate depreciation methods are more about accounting practices and errors rather than factors that would typically lead to a market valuation significantly exceeding book value. High rates of return on assets, growth opportunities, and valuable off-balance sheet assets are all factors that can contribute to a higher market valuation compared to book value, as they reflect potential future earnings and assets not fully captured in the book value.

Which of the Following Is Least Likely to Account for an Excess