Question
Most advantageous market Asset XYZ is sold in three different active markets. In Market A, the price that would be received is $27; transaction costs
Most advantageous market
Asset XYZ is sold in three different active markets.
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In Market A, the price that would be received is $27; transaction costs are $2 and the transport costs are $3.
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In Market B, the price that would be received is $26; transaction costs are $2 and the transport costs are $1.
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In Market C, the price that would be received is $29; transaction costs are $4 and the transport costs are $1.
Required
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What is the most advantageous market for Asset XYZ and what is its fair value?
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If the principal market for Asset XYZ were Market A, then what would be the fair
value of Asset XYZ?
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