Which of the Following Values Would Most Likely Interest a Shareholder

question 26

Multiple Choice

Which of the following values would most likely interest a shareholder?

• A)Book value of equity
• B)Market value of equity
• C)Historical cost of equity
• D)Retained earnings component of equity

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Definitions:

Free Riders

A person who receives the benefit of a good without paying for it. Because it is often virtually impossible to restrict the consumption of public goods to those who pay, these goods are subject to free-rider problems.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Firms

Businesses owned and controlled by individuals or groups of individuals, as opposed to being owned by the government.

Property Rights

Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.