Market value of equity is an objective measure which clearly shows what:
A)The firm's financial statements show the firm's value to be.
B)Investors think is the firm's value.
C)Stock analysts calculate as the firm's value.
D)Is the sales value of the firm.
E)Is the liquidation value of the firm.

Question

Quizplus · Accepted Answer

Market value of equity is determined by the stock market, where investors are buying and selling shares of the company. Therefore, it reflects what investors believe is the value of the firm. It may or may not match what the company's financial statements or stock analysts estimate.

Market Value of Equity Is an Objective Measure Which Clearly