What does the price action imply about the intrinsic value

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Reference no: EM131948258

Question: On the day Warren Buffett announced that Berkshire Hathaway's subsidiary, Mid American Energy. would acquire PacifiCorp for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock, Berkshire Hathaway's Class A shares popped by 2.4%. The increase represented a $2.17 billion gain in Berkshire's market value of equity ("market cap"), on a day when the S&P composite index was virtually flat. What does this price action imply about the "intrinsic" value of PacifiCorp?

Reference no: EM131948258

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