5. state the difference between Disneys book value (assets liabilities) and its market capitalization (shares outstanding X market per share). Stated differently, explain the difference between book value per share and market value per share.

• Note that this question requires that you understand how GAAP measures book value and how equity markets price shares. Its a difficult question; please do your best.
• To understand book value, note that you will have to look at your firms history of purchases of operating assets.
• You will also need to think about sources of firm value that GAAP does not even attempt to capture. What factors are capital markets building into share price that are not captured by GAAP.