Buy or sell easy a firm reports book value of


Question: Buy or Sell? (Easy) A firm reports book value of shareholders' equity of $850 million with 25 million shares outstanding. Those shares trade at $45 each in the stock market. An analyst values the equity by following the scheme: Value = Book value + Extra value. She calculates extra value of $675 million. Should she issue a buy or a sell recommendation to her clients?

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Finance Basics: Buy or sell easy a firm reports book value of
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