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Market value of a stock versus accounting book value

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Under what conditions will a stock's market value be the same as its accounting book value. Explain why.

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This solution provides a detailed, step by step explanation of the given accounting problem.

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Under what conditions will a stock's market value be the same as its accounting book value. Explain why.

This is actually a question about the Ratio of Book value to Market value of equity, a ratio derived by taking the value of shareholders' equity less the book value of preferred stock, plus deferred taxes and investment ...

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