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Explain why the book value of an asset is not necessarily the market value of that asset?
It is not same as market value because book value of assets derives from its cost and deduction of depreciation, while market value varies due to market conditions. That's why it may not be same.
What is meant by Market Value versus Book Value?
If we talking cars a market value is the retail value(what it will cost when you buy it from the dealers). The book value is the trade in value( what the dealers will pay you when you sell it).
Why market price of share differ from book value?
market value is based on demand for the asset, whereas book value is based off the asset's depreciation rate (BV= cost - accumulated deperciation) which is determined by useful life and salvage value. (cost-salvage rate/life)
Accountants suggest that assets should be valued at?
a. cost b. the lower of market or cost c. market d. the higher of market or cost
What is market to book ratio used for?
what is market to book ratios used for?
How many market research companies?
Market research companies are increasing daily. They offer a low cost means of acquiring data. Green Book offers a listing of these companies and their specialties.
How many market research companies exist?
Market research companies are increasing daily. They offer a low cost means of acquiring data. Green Book offers a listing of these companies and their specialties.
How much did the mac book air cost when it was releasted?
The price of the original MacBook Air when released in 2008 was $1799. That was the price for the U.S. market.
Is it better to use book value versus market values of debt and equity rather than book values to calculate a firms Weighted Average Cost of Capital?
HIII. I am taking accounting and in my opinion market values of debt is way better to calculate a firms weight average cost of capital... hope i helped even just a little
Depreciation is a process of cost allocation and not valuation What does this mean?
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.
What about formula for market debt ratio and book devt ratio and where is market value and book value?
Market debt ratio= TL / (TL - Equity) Note : equity with market value .
How does total cost relate to total in the market total cost relate to the production output?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost = n(TC) Total cost relates to output because firms want to make a profit. Profit = TR - TC where TR = total cost and TR = total revenue. Firms produce at the quantity which MR (marginal revenue) = MC (marginal cost). At this quantity, multiply it by n number of firms in the market to achieve the total output in a market.
