6.

Balance Sheet
Assets			Liabilities
Current Assets			Current Liabilities
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	49		Accounts payable . . . . . . . . . . . . . . . . . . . . .	41
Accounts receivable . . . . . . . . . . . . . . . . . .	24		Notes payable/short term debt . . . . . . . . . . .	7
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19		Total current liabilities . . . . . . . . . . . . . . . .	48
Total current assets . . . . . . . . . . . . . . . . . . . . .	92
Long-Term Assets			Long-Term Liabilities
Net property, plant, and equipment . . . . . . . . .	118		Long-term debt . . . . . . . . . . . . . . . . . . . . . . . .	129
Total long-term assets . . . . . . . . . . . . . . . . . . .	118		Total long-term liabilities . . . . . . . . . . . . . . . .	129
			Total liabilities . . . . . . . . . . . . . . . . . . . .	177
			Stockholders' Equity . . . . . . . . . . . . . . . . . .	33
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . .	210		Total liabilities and stockholders' Equity	210

The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.59 per share, what does this tell you about how investors view this firm's book value?

A. Investors consider that the firm's market value and its book value are roughly equivalent.

B. Investors consider that the firm's market value is worth very much less than its book value.

C. Investors consider that the firm's market value is worth more than its book value.

D. Investors consider that the firm's market value is worth less than its book value.