Question: If the estimated SVA ( shareholder value added) is $ 67.43 Vale of equity/# number of share outstandingplease advise: 1)Compare the market value of equity

If the estimated SVA ( shareholder value added) is $ 67.43 Vale of equity/# number of share outstandingplease advise:

1)Compare the market value of equity ($50/share) with the estimate provided by SVA for scenario 1. What recommendations would you make to top management based on your analysis?

2)Now compare the market value of equity ($70/share) with your SVA estimate. What would you recommend now?

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