The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.39 per share, what does this tell you about how investors view this firm's book value?
A) Investors consider that the firm's market value is worth very much less than its book value.
B) Investors consider that the firm's market value is worth less than its book value.
C) Investors consider that the firm's market value and its book value are roughly equivalent.
D) Investors consider that the firm's market value is worth more than its book value.

Question

The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.39 per share, what does this tell you about how investors view this firm's book value?
A) Investors consider that the firm's market value is worth very much less than its book value. 
B) Investors consider that the firm's market value is worth less than its book value. 
C) Investors consider that the firm's market value and its book value are roughly equivalent. 
D) Investors consider that the firm's market value is worth more than its book value.

Quizplus · Accepted Answer

The Answer of  The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.39 per share, what does this tell you about how investors view this firm's book value?
A) Investors consider that the firm's market value is worth very much less than its book value. 
B) Investors consider that the firm's market value is worth less than its book value. 
C) Investors consider that the firm's market value and its book value are roughly equivalent. 
D) Investors consider that the firm's market value is worth more than its book value.

The Above Diagram Shows a Balance Sheet for a Certain