Now suppose that the market value (in thousands of dollars) of Fincorps fixed assets in 2000 is
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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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