Book value is equal to net worth. TRUE OR FALSE??Book value is equal to net worth. TRUE OR FALSE?
Here is one explanation:
http://www.investopedia.com/terms/p/pric鈥?/a>Book value is equal to net worth. TRUE OR FALSE?
False
NOT EXACTLY, there is the price that the market establishes as per its stock price and shares outstanding, what an entreprenuer might be willing to pay for the whole company, usually a premium if it is doing well, or discount if it is in financial trouble and is desperate for a cash infusion.
A third possibility is breakup of the company into its various components that MAY release hidden value like real estate carried on its books at prices paid decades ago etc.
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