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Do you mean dissolution due to bankruptcy (i.e. value = the sum value of all assets, like hardware, real estate, etc.) or sale (value = the sale price)? I know
by chatmasta 9y ago
Do you mean dissolution due to bankruptcy (i.e. value = the sum value of all assets, like hardware, real estate, etc.) or sale (value = the sale price)?
I know very little about finance, but surely it must be important to distinguish the type of dissolution when using it to calculate the present value of a stock. There needs to be some consideration of probability of bankruptcy versus probability of sale (versus probability of no dissolution at all), right?
- dragonwriter 9y ago> Do you mean dissolution due to bankruptcy (i.e. value = the sum value of all assets, like hardware, real estate, etc.) or sale (value = the sale price)? Any dissolution, in principle, though in a dissolution forced by bankruptcy, there are unlikely to be net assets to distribute to shareholders. > I know very little about finance, but surely it must be important to distinguish the type of dissolution when using it to calculate the present value of a stock. Technically, you have to consider all possible dissolutions along with their relative probabilities, since stock isn't a claim on assets restricted to any particular dissolution.
- valuearb 9y agoThere are many liquidations that pay out significant amounts to shareholders.