cutemi
Contributing Member
Cash: $ 8.95
Posts: 41
Joined: 04 Nov 2005
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| fair price of stock? |
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(i)what is the fair price for this stock?
(Value of firm - long-term debt)/shares outstanding= fair value?
or
Value of firm/shares outstanding= fair value?
note: fair value of the entire firm: Value of equity + value of debt
which formula is right?????? 
(ii) what is market value for this stock ?
it is a right way by using average daily price within a year?
i think it is easier to find input from annual report by calculating fair value of a stock, whereas obtaining daily market price is another way to find the market price of a stock.
am i right??
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Sun Mar 26, 2006 5:45 am |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| Re: fair price of stock? |
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quote:
Originally posted by cutemi
(i)what is the fair price for this stock?
(Value of firm - long-term debt)/shares outstanding= fair value?
or
Value of firm/shares outstanding= fair value?
note: fair value of the entire firm: Value of equity + value of debt
which formula is right??????
(ii) what is market value for this stock ?
it is a right way by using average daily price within a year?
i think it is easier to find input from annual report by calculating fair value of a stock, whereas obtaining daily market price is another way to find the market price of a stock.
am i right??
Check the web site listed below. It is the regulatory body for the Accounting Industry. It might give you some insight into what you want to know.
http://www.fasb.org/project/fv_measurement.shtml
JBendar
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Sun Mar 26, 2006 5:52 am |
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