If the tangible book value of a firm significantly exceeds its market value for an extended period of time, it can become an attractive takeover target.

Question

Quizplus · Accepted Answer

When the tangible book value of a firm significantly exceeds its market value, it means that the firm's assets are worth more than its market capitalization. This can be an attractive target for potential acquirers who can potentially acquire the company for a lower price than its actual worth. Therefore, the statement is true.

If the Tangible Book Value of a Firm Significantly Exceeds