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How Is the Value of Equity Determined for a Market

Question 69

Multiple Choice

How is the value of equity determined for a market value balance sheet?


A) Summation of all the sale prices for shares of stock sold to shareholders
B) Summation of the market value of the firm's outstanding equity and debt securities
C) Summation of all shareholder investments in the firm plus the value of any retained earnings
D) Number of shares outstanding multiplied by the current price per share
E) Number of shares outstanding multiplied by the current price per share minus the amount of debt outstanding

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