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Basic Question 2 of 5

The management of a company can ______

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.

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the role of equity securities in the financing of a company's assets

contrast the market value and book value of equity securities

compare a company's cost of equity, its (accounting) return on equity, and investors' required rates of return

CFA® 2025 Level I Curriculum, Volume 3, Module 4.