1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mrrafil [7]
3 years ago
7

How does the book value of shares of stock differ from the market value of shares of stock? Use a real-world example in your ans

wer.
Business
1 answer:
Ad libitum [116K]3 years ago
3 0

Answer:

The book value of the stock can be calculated by taking the difference of assets and liabilities and then dividing the answer by the number of shares. The result will be the book value of a unit stock. Whereas the market value of the share is different because the stock market valuates the stock which is dependent on its assets, return, riskiness of the industry, social responsibility, etc. So these factors helps companies like S & P global, Dow's plc, etc to value stocks and publish the credit ratings of companies in stock exchange.

Explanation:

The market value of Home Depot is $243 in the stock exchange but the equity book value of is at deficit which is -$1878 millions. Dividing it by number of shares we have -29 ($1878 millions / 6,3.8 million shares). The book value of the company is negative but still the company has a great number of profits for the year and the company is worth $300 billions.

You might be interested in
Which choice BEST describes what might happen to unemployment rates, if minimum wage laws were repealed?
Ivenika [448]

Answer:

the short term, unemployment rates would drop drastically.

8 0
3 years ago
Read 2 more answers
Which of the following is a retirement plan offered by banks and investment companies in which an individual can deposit money t
Makovka662 [10]
Roth IRA would be the answer.
6 0
3 years ago
Read 2 more answers
U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 w
GaryK [48]

Answer:

Total= $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense= 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV= PV*(1+i)^n

First deposit= 3,200*(1.0485^5)= $4,055.01

Second deposit= 5,000*(1.0485^2)= $5,496.76

Third deposit= 3,500*(1.0485)= $3,669.75

Total= $13,221.52

4 0
3 years ago
Which of the following is NOT determined when considering the environment factor of developing the approach?
Aleonysh [2.5K]

Answer:

Financial environment

Explanation:

The environment factors that might affect the company are analyzed in order to proceed to set up a strategy for the firm. This means that all "influencing factors of the environment" are considerd. However, there is no existance of  financial environment.

8 0
3 years ago
Read 2 more answers
The main mechanism that regulates the market system is
ololo11 [35]

The main mechanism that regulates the market system is the government. It is because they are the one that sets up and regulates the system and allows the mechanism of the system to continue as the government is the one that enforces and controls the demand and supply in the market system.

5 0
3 years ago
Read 2 more answers
Other questions:
  • How much hands-on work experience with personal computing devices should a technician have before taking the a+ certification ex
    9·1 answer
  • Match each scenario with its effect on the PPC.
    9·1 answer
  • After a recent divorce, Mary is trying to get her finances in order. She has taken full-time work at the university but is unsur
    12·1 answer
  • The cash account shows a balance of $42,000 before reconciliation. The bank statement does not include a deposit of $9,200 made
    5·1 answer
  • Universal Containers email policy requires that all email traffic remain within its firewall. Currently, the company has 200 sup
    14·1 answer
  • Which of the following statements about cover letters is false?
    15·2 answers
  • On December 31, 2021 Sun Devils Company has outstanding bonds payable with a face value of $700,000, discount on bonds payable o
    14·1 answer
  • Say that transaction costs are high because there are many parties to a property use dispute. If the externality is caused by, s
    15·1 answer
  • Company A wants to issue 60 bonds. Each bond has a 7% coupon bond with semi-annual payments, a par value of $1000, 30 years to m
    11·1 answer
  • Advertising, engineering, marketing, product design, and web design are all examples ____ of work.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!