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If the intrinsic value of a share is less than the market price, which of the most reasonable?

<p><strong>(a) That shares have lesser degree of risk</strong></p> <p><strong>(b)That market is over valuing the shares</strong></p> <p><strong>(c)That he company is high dividend paying,</strong></p> <p><strong>(d) That market is undervaluing the share</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/10/28
FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER B 

 

muhammad Amjad Amjad
by muhammad Amjad Amjad , accountant , m.ilam ud din & sons

b

Ziauddin Raziuddin
by Ziauddin Raziuddin , Senior Accountant , Unimar Trading Co. LLC

B. As Intrinsic value is calculated by summing the discounted future income generated by the asset to obtain the present value without referencing the market value, therefore the market has overvalued the shares.

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

b) The market is over valuing the shares, oh my god

Arif Hussain
by Arif Hussain , Accounts Payable , Pakistan

B- THE MARKET IS OVER VALUED THE SHARE. 

vastupal shah
by vastupal shah , Accounts General Manager , Al Naaz Jewellery FZC

Answer seems B ) That market is over valuing the shares

Fahd Hameed
by Fahd Hameed , Investment Consultant / SRM , NBP Fullerton Asset Management Limited (NAFAFUNDS)

B

سامي بنجدو
by سامي بنجدو , Director Administration , Société Webixia Tunisie

B

The market is over valued the share.

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