Generally speaking,when the information is available,investors prefer to use ________ rather than ________ when evaluating a firm.
A)past data; current data
B)market values; book values
C)current data; market values
D)book values; market values

Question

Quizplus · Accepted Answer

Investors prefer to use market values rather than book values when evaluating a firm because market values reflect the current market perception and potential future earnings, whereas book values are based on historical costs which may not accurately represent the current or future value of the firm's assets.

Generally Speaking,when the Information Is Available,investors Prefer to Use ________