Use the Table for the Question(s)below

question 35

Multiple Choice

Use the table for the question(s) below.
Statement of Financial Position

-The above diagram shows a statement of financial position for a certain company.All quantities shown are in millions of dollars.If the company has 4 million shares outstanding,and these shares are trading at a price of $8.24 per share,what does this tell you about how investors view this firm's book value?

• A)Investors consider that the firm's market value is worth very much less than its book value.
• B)Investors consider that the firm's market value is worth less than its book value.
• C)Investors consider that the firm's market value and its book value are roughly equivalent.
• D)Investors consider that the firm's market value is worth more than its book value.
• E)Investors consider that the firm's market value is worth much more than its book value.