Let the book value balance sheet be represented by these symbols:

A = L + OE

Let the market value balance sheet be represented by these symbols:

V = D + E

For a mature firm that that has been very successful in the past with a current market debt-to-assets ratio of 25% after impressive share price growth, which pair of the following amounts will be very close in value?

The pair of amounts that are closest in value will be:

Select one:

a. A and V, the book and market values of assets.

b. L and D, the book and market values of debt.

c. OE and E, the book and market values of equity.

d. A and E, the book value of assets and market value of equity.

e. L and E, the book value of debt and market value of equity.