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.
Answer: B
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Hauser Corporation holds 1,900 shares of Marlow Corporation common stock as its sole long-term investment. Hauser does not have significant influence or control over Marlow. The stock was purchased during 2009 at a price of $60 per share. On December 31, 2009, the market price of Marlow's stock was $54 per share. On December 31, 2010, the market price of Marlow's stock was $68 per share. What
should be reported as the carrying value of the investment on Hauser's December 31, 2009, and December 31, 2010, balance sheets, respectively? a. 114,000; 114,000 b. 102,600; 114,000 c. 102,600; 102,600 d. 102,600; 129,200
Which of the following statements is not part of the "five-minute reading" by venture capitalists?
a. Determine the characteristics of the venture and industry. b. Determine the strengths and weaknesses of the entrepreneur. c. Determine the financial structure of the plan. d. Read the latest balance sheet.
As the degrees of freedom increase, the t distribution approaches the a. uniform distribution
b. normal distribution. c. exponential distribution. d. p distribution.
Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. Enter only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NFurst Co. uses the allowance method to account for uncollectible accounts expense. On June 20, Year 1, Furst wrote-off an uncollectible account in the amount of $2,000. On September 1, Year 1, the account was collected. How would the appropriate entries on September 1 affect the financial statements?AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?