Why should the market value equal the intrinsic value?
Question:
Why should the market value equal the intrinsic value?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
The concept that market value should equal intrinsic value is a fundamental principle in financial theory particularly in the context of efficient mar...View the full answer
Answered By
Lamya S
Highly creative, resourceful and dedicated High School Teacher with a good fluency in English (IELTS- 7.5 band scorer) and an excellent record of successful classroom presentations.
I have more than 2 years experience in tutoring students especially by using my note making strategies.
Especially adept at teaching methods of business functions and management through a positive, and flexible teaching style with the willingness to work beyond the call of duty.
Committed to ongoing professional development and spreading the knowledge within myself to the blooming ones to make them fly with a colorful wing of future.
I do always believe that more than being a teacher who teaches students subjects,...i rather want to be a teacher who wants to teach students how to love learning..
Subjects i handle :
Business studies
Management studies
Operations Management
Organisational Behaviour
Change Management
Research Methodology
Strategy Management
Economics
Human Resource Management
Performance Management
Training
International Business
Business Ethics
Business Communication
Things you can expect from me :
- A clear cut answer
- A detailed conceptual way of explanation
- Simplified answer form of complex topics
- Diagrams and examples filled answers
4.90+
46+ Reviews
54+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted:
Students also viewed these Business questions
-
In this chapter we described the various factors that influence stock prices and the approaches analysts use to estimate a stock's intrinsic value. By comparing these intrinsic value estimates to the...
-
Refer to the salesforce.com financial statement excerpts given below to answer the questions. On January 31, 2015, the price of salesforce.com stock was $56.45, and there were 650,596,000 shares of...
-
1. In what circumstances would you choose to use a dividend discount model rather than a free cash flow model to value a firm? 5. Jand, Inc., currently pays a dividend of $1.22, which is expected to...
-
An airplane has a mass of 5000 kg, a maximum thrust of 7000 N, and a rectangular wing with aspect ratio 6.0. It takes off at sea level with a 60 split flap as in Fig. 7.25. Assume all lift and drag...
-
Use the graph to determine whether y varies directly as some power of x or inversely as some power of x. Explain. 1. 2. Determine whether the variation model represented by the ordered pairs (x, y)...
-
Williams football The Sears Cup was established in 1993 to honor institutions that maintain a broad-based athletic program, achieving success in many sports, both mens and womens. In the years...
-
Name a firm where practically all of the directors were independent, which did not prevent it from experiencing severe financial difficulties in 2002, the result of a lack of control over managers.
-
E&Y is a defendant in Lehman-related lawsuits filed in both state and federal courts. Identify the factors that influence E&Ys legal exposure between lawsuits filed in state courts versus those filed...
-
5. (20 points) Balance sheet accounts for Cari Company (in $000) contained the following amounts at the end of 2020 and 2021: ASSETS Cash Accounts receivable Inventory CA 400 2021 2020 $40 $36 125 80...
-
What are the three important elements of asset valuation?
-
Explain the different types of value.
-
Would a government program that transferred income from the middle class to both the poor and the rich be supported by someone with the maximin social welfare function?
-
Choose two different ages of children to make a picture of themselves / self portrait. you may Write down your conversation and reflections of their art work. Examples for conversations and...
-
Explain why a company's shares are actively traded on the stock market need not worry about diversification. Despite this, how is risk usually measured in capital budgeting projects? Why?
-
Is the process of preparing a Capital Budget really any different than building an Operating Budget? Please explain your thoughts
-
What were traditional Native economies and how did those influence traditional government structures? Do you feel that without strong economies there can be strong, sovereign governments? Why or why...
-
Find and review the Twitter accounts of three reporters: One from a national news organization (CNN, New York Times, Washington Post, etc.) One from a regional/local news organization (Centre Daily...
-
What are the two types of lease classifications defined by IFRS?
-
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
-
How powerful is Watson? Describe its technology. Why does it require so much powerful hardware?
-
How intelligent is Watson? What can it do? What can?t it do?
-
What kinds of problems is Watson able to solve ? How useful a tool is it for knowledge management and decision making ?
-
ABC Costing Method what is the the "Using Gross Profit %"for the 3 empty grey spaces ... Note the existing profit is not 52.17% for the second empty box Question 1 The sustainability manager is...
-
A health savings plan Question 14 options: a) may be an involuntary payroll deduction for an employee. b) allows users to save money that is deducted after taxes to pay for future medical expenses....
-
Madison Manufacturing wants to import a machine from Germany. However, the company's head of manufacturing is reluctant to spend the time required to obtain a letter of credit that the German...
Study smarter with the SolutionInn App