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Financial Instruments and Asset Valuation Name Institution Lecturer Course Date Some differences between intrinsic value book value market value and liquidation value. The intrinsic value of an asset is its Current value and the expected future value and the cash flow it will yield. In other terms it has been referred to as the fair value or economic value of the asset. For an investor it is the amount one would be willing to pay to get that asset. For instance if a company is interested in buying another company that is collapsing thinking it might be of critical value in future the amount it would be willing to pay is the intrinsic value of the should factor in the external factors which may affect the performance of that asset. Different factors like trends may influence the value of an asset to increase or decrease depending on the way the market responds. As a result investors should consider the returns and the expected cash flow to be generated when investing in an asset (Chambers 1986). References Bodie Z. & Davis E. P. (2000). The foundations of pension finance. Chambers R. J. (1986). Financial management. Types of Value- Fair Market Value Intrinsic Value Liquidation Value Investment Value — Valuation Academy. (2016). Retrieved from valuationacademy.com What is the difference between a company's book value per share and its intrinsic value per share? (2015). Retrieved from http://www.investopedia.uk/ask/answers/05/bookvintrinsic.asp [...]
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Choose an article that discusses the differences between book value, liquidation value, market value, and intrinsic value. Explain the three factors that determine the intrinsic, or economic, value of an asset. As an investor, explain why these concepts are important to business leaders in Saudi Arabia. Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to these values and doing business in Saudi Arabia. For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search. "minimum three references"
Subject Area: Finance
Document Type: Research Paper
