What is the difference between book value and market value of stock?
Market value is the amount that each share of stock is selling for on the market. Market value is the best indicator of true value since par value is chosen only to establish a minimum legal liability. Book value is calculated as net assets divided by the number of shares of common stock outstanding. It indicates the rights that stockholders have, based on recorded values, to the net assets in the event of liquidation. It is therefore not a measure of the market value of the stock.
You might also like to view...
Office equipment depreciation totaled $1,300 . What is the proper journal entry?
a. Debit Accumulated Depreciation-Office Equipment $1,300, credit Depreciation Expense-Office Equipment $1,300. b. Debit Factory Overhead (Depreciation Expense-Office Equipment) $1,300, credit Accumulated Depreciation-Office Equipment $1,300. c. Debit Depreciation Expense-Office Equipment $1,300, credit Accumulated Depreciation-Office Equipment $1,300. d. Debit Accumulated Depreciation-Office Equipment $1,300, credit Factory Overhead (Depreciation Expense-Office Equipment) $1,300. e. Debit Depreciation Expense-Office Equipment $1,300, credit Office Equipment $1,300.
The purpose of the Clayton Act is to
A. strengthen the Robinson-Patman Act. B. exact compensation from firms found guilty of violating fair trade practices. C. provide incentives for interstate commerce. D. repeal provisions of the Sherman Antitrust Act that stifled innovation. E. forbid actions that are likely to lessen competition, although no actual harm has yet occurred.
A gender difference in communication styles is that women tend to be more directive in their conversation, whereas men emphasize politeness
Indicate whether the statement is true or false.
If a company paid a dividend of $1 in 2012 and the dividend grows annually by 7 percent, what will be the dividend in 2017??
What will be an ideal response?