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What inference can be drawn about the market opinion

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Problem 1: A public company has a book value of $128 million. They have 20 million shares outstanding, with a market price of $4 per share. What inference can be drawn about the market's opinion on the company's assets?

A. Investors believe the company will grow rapidly in the near term
B. The company will definitely go up in value
C. The company will definitely go down in value
D. Investors believe the company's assets are not likely to be profitable since its market value is worth less than its book value.

Reference no: EM132929165

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