Giggle Has a Reported Book Value of $15 Million;however,the Market

question 92

Multiple Choice

Giggle has a reported book value of $15 million;however,the market value of Giggle's stock is $47 million.This means:

• A)the company is not reporting its assets correctly on the Balance Sheet.
• B)the market thinks the company is overvalued.
• C)the market thinks the company is worth over three times what the Balance Sheet reports.
• D)the CEO should get a raise.

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