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Giggle Has a Reported Book Value of $15 Million;however,the Market

Question 134

Multiple Choice

Giggle has a reported book value of $15 million;however,the market value of Giggle's stock is $47 million.This means:


A) the company is not reporting its assets correctly on the Balance Sheet.
B) the market thinks the company is overvalued.
C) the market thinks the company is worth over three times what the Balance Sheet reports.
D) the CEO should get a raise.

Correct Answer:

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