In estimating value per share of common stock of a company,for which of the following is book value a reasonable approximation for evaluating the asset or liability?
I.Excess real estate.
II.Discontinued operations.
III.Floating rate debt.
IV.Employee stock options.
A)I and II only.
B)I and III only.
C)II and III only.
D)III and IV only.

Question

Quizplus · Accepted Answer

Book value is a reasonable approximation for evaluating discontinued operations and floating rate debt because these are typically recorded at their fair value or close to it on the balance sheet.

In Estimating Value Per Share of Common Stock of a Company,for