“The market capitalisation of a brand as reflected by their share price on the stock exchange is often far higher than the actual asset value of the company.” Dissect and evaluate this statement in relation to the difficulties encountered in valuing a company when trying to sell it.

“The market capitalisation of a brand as reflected by their share price on the stock exchange is often far higher than the actual asset value of the company.” Dissect and evaluate this statement in relation to the difficulties encountered in valuing a company when trying to sell it.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 4QTD

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“The market capitalisation of a brand as reflected by their share price on the stock exchange is often far higher than the actual asset value of the company.”

Dissect and evaluate this statement in relation to the difficulties encountered in valuing a company when trying to sell it.

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