Book versus Market Value. Now suppose that the market value (in thousands of dollars) of Fincorps fixed

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Book versus Market Value. Now suppose that the market value (in thousands of dollars) of Fincorp’s fixed assets in 2000 is $6,000, and that the value of its long-term debt is only $2,400. In addition, the consensus among investors is that Fincorp’s past investments in developing the skills of its employees are worth $2,900. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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