Sample text

Q5. Your Response:

I have confidence that it is imperative not solely focus on what the dollar figure of an equity

would be, besides having a clue on the valuation range. For instance, in case a stock trade is

below or at a lower end of a range that has been decided upon, it is possible that it is within a

good value. However, the reverse could be true if it reflects at a high end this indicating some

sign of a shortage opportunity. Therefore, employing equity in the valuation process could be a

very good idea since it is quite detailed on how it places value on the company. Besides, it

utilizes all the organizations value in addition to its short and long-term investments, cash and

cash equivalents while deducting all the short and long-term debts as well as minority interests.

Essentially, this would offer a well-rounded view of all the company’s aspects.

Q5. Text from another student’s paper

I believe that it is important not focus solely on what the dollar figure of an equity might be, and you

should view the valuation range. For example, if a stock trade is at the lower end, or below the lower

end of a decided upon range, it is likely that it is within a good value. The opposite could be true at the

high end and could be a telling sign of a shorting opportunity. I feel that using equity to value my

company would be a good idea because it is very detailed in how it places a value on the company. It

uses the enterprise value plus all cash and cash equivalents, short and long-term investments, and less

all short-term debt, long-term debt and minority interests. Which I feel give a well-rounded view of all

aspects of your company.