A Public Company Has a Book Value of $128 Million

question 3

Multiple Choice

A public company has a book value of $128 million.They have 20 million shares outstanding,with a market price of $4 per share.Which of the following statements is true regarding this company?

• A)Investors may consider this firm to be a growth company.
• B)Investors believe the company's assets are not likely to be profitable its market value is worth less than its book value.
• C)The firm's market value is more than its book value.
• D)The value of the firm's assets are greater than their liquidation value.

---

Definitions:

President Carter

The 39th president of the United States, serving from 1977 to 1981, known for his efforts in advancing peace and human rights.

Jimmy Carter

The 39th President of the United States, serving from 1977 to 1981, known for his efforts in peace negotiations and energy conservation.

Conservatives

Political ideology favoring the preservation of traditional social institutions and values, with a tendency to resist change that challenges established norms.

Federal Government

The national government of a federal country, such as the United States, which has specific powers delegated to it by a constitution, distinguishing it from state or local governments.