Difference between capitalization and their book value
Is the difference for the value creation in a company among the market value of the shares (capitalization) and their book value a good measure since its foundation?
Expert
No. Value creation in an era is the difference between the return to shareholders and the needed return multiplied by the capitalization at the starting of the period.
Does this make any sense to form a portfolio comprised of companies along with a higher return/dividend?
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I have a doubt about the Enron case. How could this prestigious investment bank advice investing while the quotations of the shares were falling?
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