Question: 3. A. Explain way liquidation value is generally not relevant to estimating intrinsic value for profitable companies. The reason why liquidation value is not relevant

3. A. Explain way liquidation value is generally not relevant to estimating intrinsic value for profitable companies. The reason why liquidation value is not relevant to estimating intrinsic value of a business is that, apart from taking all the cash assets into account, it is not concerned with added value of employees who are invaluable on a going-concern basis

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!