Market value versus book value of capital


Response to the following questions:

1. What are some of the arguments for and against the use of market value versus book value of capital?

2. Why is the market value of equity a better measure of a bank's ability to absorb losses than book value of equity?

If possible, please give examples to better understand your response.

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Financial Accounting: Market value versus book value of capital
Reference No:- TGS02098841

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