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in 400 words describe the following, 1. Offer some reasons that the intrinsic value that you...

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Finance

in 400 words describe the following,

1. Offer some reasons that the intrinsic value that you mightcalculate with the methodologies learned might yield a pricedifferent than what the stock trades at in the stock market. Youcan reference any method of valuation models in offering thoughtson why there might be differences between intrinsic and marketvalues.

2. Describe three different examples of analysis where you mightuse discounted cash flows.

Answer & Explanation Solved by verified expert
3.6 Ratings (659 Votes)
1Reasons for difference between intrinsic value and the market value are given below Shareholders are future oriented shareholders are less interested in the present condition of the company than the future of the company because they expect company to grow both financially and operationally in the future They expect that the performance of the company increases because of which the future worth of the company increases Therefore intrinsic value which is the current worth of the business differs from the market value which is the future worth of the business from shareholders    See Answer
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in 400 words describe the following,1. Offer some reasons that the intrinsic value that you mightcalculate with the methodologies learned might yield a pricedifferent than what the stock trades at in the stock market. Youcan reference any method of valuation models in offering thoughtson why there might be differences between intrinsic and marketvalues.2. Describe three different examples of analysis where you mightuse discounted cash flows.

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