Under Fundamental analysis the intrinsic value of the stock is meassured by analysing economic and financial factors. This method analysis the stock's real and fair market value. According to this analysis if the market price of the stock is lower than its fair market value then the stock is deemed to be underpriced, which means the stock price is going to rise in future. On the other hand if the fair market value of the stock is lower than its market price then it is assumed that the future prices of stock are going to decline.
Under Fundamental analysis the intrinsic value of the stock is meassured by analysing economic and financial factors. This method analysis the stock's real and fair market value. According to this analysis if the market price of the stock is lower than its fair market value then the stock is deemed to be underpriced, which means the stock price is going to rise in future. On the other hand if the fair market value of the stock is lower than its market price then it is assumed that the future prices of stock are going to decline.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Under Fundamental analysis the intrinsic value of the stock is meassured by analysing economic and financial factors. This method analysis the stock's real and fair market value. According to this analysis if the market price of the stock is lower than its fair market value then the stock is deemed to be underpriced, which means the stock price is going to rise in future. On the other hand if the fair market value of the stock is lower than its market price then it is assumed that the future prices of stock are going to decline.
BASED ON THE STATEMENT ABOVE PLEASE DRAW THE GRAPH AND EXPLAIN IT ON U.S. SITUATION
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