Financial Economists Prefer to Use Market Values When Measuring Debt

question 36

Multiple Choice

Financial economists prefer to use market values when measuring debt ratios because:

• A)market values are more stable than book values.
• B)market values are a better reflection of current value than historical value.
• C)market values are readily available and do not have to be calculated like book values.
• D)market values are more difficult to calculate which makes financial economists more valuable.
• E)None of the above.

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