Difference between capitalization and their book value
Is the difference for the value creation in a company among the market value of the shares (capitalization) and their book value a good measure since its foundation?
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No. Value creation in an era is the difference between the return to shareholders and the needed return multiplied by the capitalization at the starting of the period.
Is the market risk premium a parameter, for the world economy or for the national economy?
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Capital formation: It is an increase in the stock of capital in particular period is termed as capital formation.
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