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1.You are reviewing the books of a firm you are considering purchasing and notice a considerable difference between the market value of some assets and
1.You are reviewing the books of a firm you are considering purchasing and notice a considerable difference between the market value of some assets and the book value. Why might there be a difference?
2,If you consider purchasing a firm what is the firm's enterprise value based on? (Hint: consider this in terms of the balance sheet entities).
Comment on the difference between 'enterprise value' and 'market value'.
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