Market values are appropriate because new projects are generally funded with newly raised money.

Question

Quizplus · Accepted Answer

Market values are appropriate because they provide an accurate and current representation of the value of a company's stock or assets, which can be used in the process of raising new funds for projects. Investors are more likely to invest in a company that has a high market value, indicating that the company is in a strong financial position and has the potential for growth. Therefore, market values are often used to determine the amount of funding a company can raise for new projects.

Market Values Are Appropriate Because New Projects Are Generally Funded