A Public Company Has a Book Value of $128 Million

question 29

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 since 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 is greater than their liquidation value.