Q691
If book value is greater than market value comparison with investors for future stock are considered as
A.
pessimistic
AnswerB.
optimistic
C.
experienced
D.
inexperienced
Answer: Option A
Solution
Answer: Option A
Solution:
If book value is greater than market value comparison with investors for future stock are considered as pessimistic. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.