The estimate which can be confidently taken among the three estimates and the reason of choosing the estimate. Intrinsic Value: An estimated value of the stock which can be determined by considering the exact risk and return. It can be estimated but cannot be measured precisely. The intrinsic value can be calculated by professional analyst on the basis of data provided by the company.

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Chapter 1, Problem 3Q

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To determine: The estimate which can be confidently taken among the three estimates and the reason of choosing the estimate.

Intrinsic Value: An estimated value of the stock which can be determined by considering the exact risk and return. It can be estimated but cannot be measured precisely. The intrinsic value can be calculated by professional analyst on the basis of data provided by the company.

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