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The market value of the firm is the result of

This question belongs to Commerce Financial Management
Financial Management
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The market value of the firm is the result of __________.

Answer & Solution
Correct Answer: Option D
The market value of the firm is the result of trade-off between cost and risk. Market value is the price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization of a publicly traded company, and is obtained by multiplying the number of its outstanding shares by the current share price.
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