Why doesn't stockholders' equity equal the market value of equity?
A) Stockholders' equity usually does equal the market value of equity.
B) Investors tend to incorrectly price the market value of equity.
C) It's related to the use of historical cost to report many long-term assets and the expensing of value generating costs such as research and development and advertising.
D) It's due to incorrect entries prepared by accountants.
Correct Answer:
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