Does the book value of the debt coincide with market value
Does the book value of the debt all the time coincide with its market value?
Expert
No. Some illustrations include: long-term debt along with a fixed interest rate which is higher or lower than the present market rate; debt to a company with certain serious financial troubles and debt along with government subsidies.
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The often known as "cash flow" that is net income plus depreciation, is a flow of cash, but is this a flow to the company or to the shareholders?
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Strong form market efficiency: Strong form market efficiency defines that the price of a security in the market replicates all information—public and also private or within information. Strong form efficiency
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