The stock price multiplied by the number of stock shares outstanding. for example if there are a million shares of stock and the the price is 1 dollar per share then the market value is one million
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
The Q ratio is calculated as the market value of a company divided by the replacement value of the firm's assets Tobin's Q ratio
A firm with market power has the ability to control prices and total market output .
1. Instant growth of market share. 2. Elimination of competition.
cost of capital :)
The market value of the firm is maximized by establishing a brand image or a increasing the brand equity of the firm which is done through advertising or other marketing campaigns and it adds value to the overall worth of a Company in the form of Goodwill and rest of the information can be found from merapakistan.com
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
the answer is A. if the market value of the firms investments exceeds the total capital invested in the firm, then sharholder wealth has been created to the extent of the difference.
When a firm "floats" it sells stock (share holdings) on a listed stock exchange. People purchase these and they become the owners of the firm and receive a share of the profits that the firm makes each year. If the firm does well then the value of the shares rises on the stock market the shares sell for more than the person originally paid for them. If the firm is badly run it does less well and the value of the shares fall and if the person were to sell their holding, they may get less than they paid for them. Thus the net value of a firm (the total value of all the shares issued) is reflected by the performance (price obtainable) of its shares on the market.
regarding financial mangment
The Q ratio is calculated as the market value of a company divided by the replacement value of the firm's assets Tobin's Q ratio
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
The market value of a firm's equity increases, the cost of capital decreases.
A firm with market power has the ability to control prices and total market output .
1. Instant growth of market share. 2. Elimination of competition.
cost of capital :)
The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.