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WorksheetsBook vs. market value
Total questions: 7
Worksheet time: 4mins
Book value can be assumed to be equivalent to accounting value
True
False
Book value of equity =
Share price * Shares outstanding
Total assets - total liabilities
Total assets - net financial debt
None of the above
What is the book value if total assets is $100 mio and total liabilities is $80 mio (in mio $)
(a)
Book value per share
= (Total assets - total liabilities) / Total shares outstanding
= (Shareholder's equity) / Total common shares outstanding
= (Shareholder's equity - Preferred equity) / Total shares outstanding
=(Shareholder's equity - Preferred equity) / Total common shares outstanding
Which statement is false? Market value
Reflects the true value
is usually greater than book value
of equity can be negative
No statement is false
Market value can be calculated using the following method:
DCF
Comparable companies
Comparable transactions
All of the above
Book value
Future based
Interesting for bondholders
Accounting based
Discounted
Can be negative
