When the Intrinsic Value of an Asset Exceeds the Market

question 134

Multiple Choice

When the intrinsic value of an asset exceeds the market value

• A)the asset is undervalued to the investor.
• B)the asset is overvalued to the investor.
• C)market value and intrinsic value are always the same; therefore,this could not happen.
• D)liquidation value must be higher than book value.

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Definitions:

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Exerting power or influence over others; more pronounced or effective than others.

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