The Above Diagram Shows a Balance Sheet for a Certain

question 7

Multiple Choice

The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.39 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.

---

Definitions:

Performance Goals

Specific objectives set for individuals or teams to achieve, aimed at enhancing productivity and effectiveness.

Establishing Strategy

The process of defining a direction for the organization through goals, plans, and actions to compete and operate successfully.

Self-managing Work Team

is a group of employees tasked with a particular project or objectives with the autonomy to manage themselves.

Allocating Tasks

The process of distributing work activities or tasks among team members based on skills, availability, or other criteria.