Which of the following is the best measure of the floor for a stock price?
A) Book value
B) Liquidation value
C) Replacement cost
D) Market value
E) Tobin's Q

Question

Quizplus · Accepted Answer

Liquidation value is considered the best measure of the floor for a stock price because it represents the net value that would be received if all the assets were sold and liabilities paid off. This provides a baseline below which the stock price is unlikely to fall, as it reflects the minimum value investors could expect in a worst-case scenario where the company is liquidated.

Which of the Following Is the Best Measure of the Floor