- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 39. Overview of Equity Securities
- Subject 6. Equity Securities and Company Value
CFA Practice Question
The management of a company can ______
B. directly influence a company's market value of equity.
C. not directly influence a company's market value or book value of equity.
A. directly influence a company's book value of equity.
B. directly influence a company's market value of equity.
C. not directly influence a company's market value or book value of equity.
Correct Answer: A
Management can directly affect the book value of a company but can only indirectly affect its market value.
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