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Question 9 2 pts Which of the following accurately describes the relationship between book and market value? Book value is an accounting summary of value
Question 9 2 pts Which of the following accurately describes the relationship between book and market value? Book value is an accounting summary of value and is inferior to market value as a source of current information regarding the true value of the firm. The goal of financial management is to maximize the market value of the stock, not its book value. Financial managers should rely on book values, and not market values, when making decisions for the firm, because the firm's tax liability is based on book values. Market value always exceeds book value. The market value of current assets is often difficult to determine, and thus of little value to the decision-making process of financial managers. None of the above
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