Perhaps the best method for estimating the market value of shareholders' equity is to:

Question

Quizplus · Accepted Answer

The best method for estimating the market value of shareholders' equity is to multiply the number of shares outstanding by the market price of each share. This calculation provides the total market value of equity held by shareholders, which reflects the value that investors place on the company's future profitability and growth prospects. Reading from the balance sheet or income statement can provide useful information, but does not directly reflect the market value of shares. Adding retained earnings and total liabilities can provide the book value of shareholder's equity, but does not consider future growth or market-driven valuation.

Perhaps the Best Method for Estimating the Market Value of Shareholders