Market Value Is Usually Greater Than Book Value Because

question 83

Multiple Choice

Market value is usually greater than book value because:

• A)inflation drives market value above original costs.
• B)inflation drives book value below original costs.
• C)firms tend to invest in projects with very high book values.
• D)the cost of capital drives market value up.

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Definitions:

Six-Figure Accuracy

A numerical precision level that includes six digits of meaningful data.

Superscript

A character, number, or symbol written or printed above the line of text, often used for citations, footnotes, or mathematical powers.

Six-Figure Accuracy

A term indicating a level of precision or accuracy to the nearest hundred thousand in numerical calculations or measurements.

Powers

In mathematics, the term refers to the exponentiation operation, where a number is raised to the power of another number, indicating repeated multiplication.