Suppose to companies have the exact same balance sheets

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Suppose to companies have the exact same balance sheets (i.e. – their book values are the same). Which of the following would not be a reason for one company to have a higher market value than the other?

The firm with the higher market value has a higher rate of anticipated growth

The firm with the higher market value has more sustainable competitive advantages

The firm with the lower market value has less volatile earnings

The firm with the lower market value is facing a large government lawsuit

Reference no: EM131308142

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