Market Value Is Usually Greater Than Book Value Because

question 72

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

---

Definitions:

Hallucinations

Perceptions in the absence of external stimuli, such as seeing or hearing things that are not present.

Restricted Affect

A symptom in which emotional expression is reduced or absent.

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.