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.

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