Question

Which statements are true about book value (BV) and market value (MV)? Check all that apply:...

Which statements are true about book value (BV) and market value (MV)?

Check all that apply:

The BV of debt is usually greater than the MV of debt.

The BV of debt is usually similar to the MV of debt.

The BV of equity is usually greater than the MV of equity.

The BV of equity is usually less than the MV of equity.

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Answer #1

Option "B" is correct

Book value of debt is usually similar to the market value of debt.

Book value of debt is the amount the company owes. So it will be usually similar to the market value of debt.

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