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?
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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.
Is the relation in between book value of shares or capitalization a good guide to investments?
What would the future value after 5 years of $100 be at 10% compound interest?
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