Why is the market value of equity (stock) in a firm with great future opportunities more than the book value of its equity? Choose all that are correct.

Question 4 options:

1)The firm's opportunities are expected to generate strong future cash flows fore equity holders whose present value exceeds the book value of equity

2)The resale (liquidation) values of assets (like an assembly plant) are greater than the market value of assets

3)Investors expect the firm to generate cash for equity holders that far exceed the purchase price of the firm's assets financed by equity.