Book value is:
A)the same as market value.
B)a more accurate valuation technique than the dividend models.
C)the accounting value of the firm as reflected in the financial statements.
D)the same as liquidation value.

Question

Quizplus · Accepted Answer

Book value is the value of a company's assets, liabilities, and equity as shown on its balance sheet. It is the accounting value of the firm, as reflected in the financial statements. It is not necessarily the same as market value or liquidation value, as it does not take into account factors like market conditions, economic outlook, or intangible assets. While dividend models can be useful in determining a company's value, they do not necessarily provide a more accurate valuation than book value.

Book Value Is