Q185
The market value of the firm is the result of __________.
A.
dividend decisions
B.
working capital decisions
C.
capital budgeting decisions
D.
trade-off between cost and risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The market value of the firm is the result of trade-off between cost and risk. Market value is the price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization of a publicly traded company, and is obtained by multiplying the number of its outstanding shares by the current share price.