Perhaps the best method for estimating the market value of shareholders' equity is to:
A) review the firm's balance sheet.
B) review the firm's income statement.
C) multiply number of shares outstanding by the price of each share.
D) add the retained earnings to the total liabilities.

Question

Quizplus · Accepted Answer

The most accurate method for estimating the market value of shareholders' equity is by multiplying the number of shares outstanding by the current market price of each share. This method takes into account the current market demand and perception of the company, which affects the stock price. The other options, such as reviewing the balance sheet, income statement, and retained earnings, provide relevant information but do not provide an accurate estimation of the market value of shareholders' equity.

Perhaps the Best Method for Estimating the Market Value of Shareholders