Which One of the Following Is Included in the Market

question 50

Multiple Choice

Which one of the following is included in the market value of a firm but not in the book value?

• A)Raw materials
• B)Partially built inventory
• C)Tax liability
• D)Reputation of the firm
• E)Value of a partially depreciated machine

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Definitions:

Market Price

The current value at which an asset or service can be bought or sold in the marketplace.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including those held by institutional investors and restricted shares held by company’s insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of one's holdings remains the same.

Shareholder Wealth

The total value of a shareholder's equity in a company, taking into account the current market value of shares owned.