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Why Are Market Values Preferred to Book (Balance Sheet) Values

question 73

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Why are market values preferred to book (balance sheet) values when computing a firm's weighted average cost of capital?


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Poor Performance

The failure to meet established standards, expectations, or objectives in work or other activities.

Internal Attribution

The process of attributing the cause of an individual's behavior to internal characteristics or personality, rather than external factors.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization or department.

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Refers to increasing the availability of materials, finances, or human capital required to perform tasks or achieve goals.

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