Tuesday, 30 October 2012

Finance Assignment Help – Different type of values

A security like bond share can be evaluated by the series of dividends or interest payments receivable over a different period of time. A security can be defined as the present value of the future cash incoming streams. The intrinsic value of an asset or security is equal to the present value of the benefits associated with intrinsic value. According to Finance Assignment Help the future returns are discounted using the required return commensurate with the risk.

Book value is concept based on accounting. Value is what an asset or capital is worth today in terms of their potential benefits. Assets are recorded generally at historical cost and these are depreciated over years. Book value may include assets of intangible type at acquisition cost minus a mortised value. The book value of a loan is stated at an outstanding amount. Book value of different type of share  is calculated by dividing the net worth by the number of outstanding shares.

Replacement value is the amount a company or organization is required to spend, if it were to replace by its existing assets in the present condition. It is very difficult to find cost of assets presently used by organization or company.

Liquidation value is the amount a organization company can realize if it sold the assets after winding up its business. It will not include the value of intangibles as the operations of the company  or organization will cease to exist. Liquidation value is generally the lowest value a company might accept if it sold its business.

Going concern value is important concept that amount a company can realize if it sells its business as an operating one. Finance assignment help explain that This value is always higher than the liquidation value.

Market value is the current price at which the asset or security or bond is being sold or bought into the market. Market value per share is probably higher than the book value per share for expendable profitable and growing firms.

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