IBM stock is traded at 100 a share Based on the cash flow fo

IBM stock is traded at $100 a share. Based on the cash flow forecast and an estimate of the risk, however, you think the stock is worth only at $95 a share. What type of value is $100/share and $95/share referred to respectively?

market value, book value

market value, intrinsic value

liquidation value, intrinsic value

book value, market value

liquidation value, market value

Solution

$100 -Market value $95-Intrinsic value