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What was the change in Global's book value of equity from 2015

to 2016 according to Table 2.1

LOADING...? Does this imply that the market price of Global's shares increased in 2016? Explain.

What was the change in Global's book value of equity from

2015 to 2016?

Global's book value of equity changed by $__________nothing million from 2015 to 2016.

(Round to one decimal place.)Does this imply that the market price of Global's shares increased in 2016?

Explain.(Select all the choices that apply.)

A.There are many events that may affect Global's future profitability, and hence its share price, that do not show up on the balance sheet.

B.An increase in book value necessarily indicates an increase in Global's share price. The book value of the equity does not go up unless the share price goes up.

C.An increase in book value does not necessarily indicate an increase in Global's share price.

D.The market value of a stock does not depend on the historical cost of the firm's assets, but on investors' expectation of the firm's future performance.

2016 2015 Global Corporation Balance Sheet for 2016 and 2015 ($ millions) Assets 2016 2015 Current Assets Cash 23.7 20.9 Accounts receivable 19.4 12.7 Inventories 15.9 Total current assets 59 47.2 Long-Term Assets Net property, plant, and equipment 113.5 81.7 Total long-term assets 113. 5 81.7 Liabilities and Stockholders' Equity Current Liabilities Accounts payable Notes payable/short-term debt Total current liabilities Long-Term Liabilities Long-term debt Total long-term liabilities Total Liabilities 28.3 5.5 33.8 26.5 3.3 29.8 13.6 115.8 115.8 149.6 77.5 77.5 107.3 Stockholders' Equity Common stock and paid-in surplus Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equi 7.7 15.2 22.9 172.5 7.7 13.9 21.6 128.9 Total Assets 172.5 128.9

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