Book Value:
The book value of an asset refers to that value at which the asset is posted in the company’s financial statement, the
Market Value
The market keeps on changing every time. Market value refers to the value of the asset at which it is valued in the market at a particular time. The market value is also referred to as the market capitalization of those companies that are traded publically. It can be calculated as under:
To Identify:
The reasons for the difference in the book value and market value of the assets of a company.
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Chapter 2 Solutions
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
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