Differentiate Between Intrinsic and Instrumental Value

question 83

Essay

Differentiate between intrinsic and instrumental value.

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Definitions:

Weighted Average Cost of Capital

The expected average yield that a company aims to deliver to its security investors for the purpose of funding its assets.

Debt-Equity Ratio

A proportion indicator of how a company leverages debt and equity to finance its asset base.

Market Values

The market's going price for acquiring or selling a service or asset now.

Book Value

The net value of a company's assets minus its liabilities, often used to assess if a stock is under- or overvalued.