Is there a difference between price and value

Assignment Help Financial Management
Reference no: EM13808694

What is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment in time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where there is a market price every day? Is there a difference between “price” and “value”?

Reference no: EM13808694

Questions Cloud

What is the nominal cost of its nonfree trade credit : If a firm buys under terms of 1/15, net 40, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume 365 days in year for your calculations.
Nominal and effective costs of trade credit : Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,972,000, and accounts receivable averaged $488,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of ..
About the cash conversion cycle : Negus Enterprises has an inventory conversion period of 80 days, an average collection period of 47 days, and a payables deferral period of 40 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm's cash conversion cycl..
Breakeven point for new process : What is the breakeven point for this new process? Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?
Is there a difference between price and value : What is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment in time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where th..
Construct two financing plans-one conservative : Christensen & Assoc. is developing an asset financing plan. Christensen has $1,000,000 in current assets, of which 15% are permanent, and $700,000 in fixed assets. The current long-term rate is 9%, and the current short-term rate is 6.5%. Christensen..
Process proposed in the previous problem : Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?
The court held that lightle committed fraud : The court held that Lightle committed fraud by not telling the truth about the contract status of the house. Did he intend to deceive the buyer? Since Lightle was the representative of the sellers, the Leighs, why should he have any obligation to the..
Advantages and disadvantages of using the pert approach? : What would you consider as advantages and disadvantages of using the PERT approach?

Reviews

Write a Review

Financial Management Questions & Answers

  Income statement showed an interest expense

Evans Co. showed long-term debt of $1.7M in 2005, and the December 31, 2006 balance sheet showed long-term debt of $1.9M. The 2006 income statement showed an interest expense of $650,000. What is the firm's cash flow to creditors in 2006?

  Assume that the yield to maturity remains constant

A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? ..

  Interest and leave the account unmolested

If you invest $3,377 today in an account earning 15.12% interest and leave the account unmolested for 35 years; how much will be in the account at the end of the 35 years?

  What is the value of the premium

Among a company’s assets and accounting records, an actuary finds a 10-year bond that was purchased at a premium. What is the value of the premium?

  Batting average and earned run average

The number of victories (W), earned run average (ERA), runs scored (R), batting average (AVG), and on- base percentage (OBP) for each team in the American League in the 2012 season are provided in the following table. The ERA is one measure of the ef..

  Cost of equity capital using both dividend capitalization

Tri-County Inc. pays an annual common stock dividend of $1.80 per share. The dividend has shown a constant growth rate over the past 5 years from $1.10 to its present level. This growth trend is expected to continue. The company's dividend payout rat..

  Nonproduction expenses such as marketing

Nonproduction expenses such as marketing, research and development, and general administrative costs can play an important role in a company's ability to meet long-term goals. Discuss how the budgets for each of these costs contribute to the company'..

  Based on quarterly compounding

Suppose you deposit $55 each period into an account that has a APR of 9%, based on quarterly compounding. How much will you have in the account in 35 years?

  Explain the capital budgeting techniques

explore the capital budgeting techniques covered in the unit, NPV, PI, IRR, and Payback. Compare and contrast each of the techniques with an emphasis on comparative strengths and weaknesses

  Interests will company be paying over the five-year period

Double Circle, Inc. just signed a five-year loan agreement to purchase a piece of property. If the property cost was $160,000, what would be the size of each equal semi-annual payment to amortize the loan at an interest rate of 10%? How much interest..

  A price to book ratio considers

A price to book ratio considers

  calculated using the lump sum PV or FV formula

Twenty years ago, a relative bought you a zero bond that matured at $1000 today. Zeroes pay no periodic interest and is calculated using the lump sum PV or FV formula. The stated interest rate during the 20-year period was 2.32% and inflation average..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd