As of the date that I am writing this chapter (January, 2015), the average market value of
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As of the date that I am writing this chapter (January, 2015), the average market value of the stocks in the Standard & Poor’s 500 Index is equal to 2.7 times the value of the equity as shown on those companies’ balance sheets. Based on the discussion in this chapter of how accountants value assets, suggest two reasons why the market value of these companies is so much higher than the value of their equity on their balance sheets.
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Introductory Accounting A Measurement Approach For Managers
ISBN: 9781138956216
1st Edition
Authors: Daniel P. Tinkelman
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