Balance Sheet

$\backslash$table$[[$Assets$,$Liabilities$],[$Current Assets,,Current Liabilities,$],[$Cash$,53,$Accounts payable,$40],[$Accounts receivable,$23,$Notes payable$/$short$-$term debt,t $5],[$Inventories$,17,,],[$Total current assets,$93,$Total current liabilities,$45],[$Long$-$Term Assets,,Long$-$Term Liabilities,$],[\backslash$table$[[$Net property, plant,$],[$and equipment$]],117,$Long$-$term debt,$133],[$Total long$-$term assets,$117,$Total long$-$term liabilities,$133],[,,\backslash$table$[[$Total Liabilities$],[$Stockholders$\text{'}$ Equity$]],\backslash$table$[[178],[32]]],[$Total Assets,$210,\backslash$table$[[$Total Liabilities and$],[$Stockholders$\text{'}$ Equity$]],210]]$

FIN $360$ : Homework $1$

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\mathrm{.}39$ 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 is worth less than its book value.

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

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

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