If a company is profitable, the liquidation is generally_______ than the prevailing market price of the share.a.The sameb.Lowerc.Higherd.Either higher or lowerClear my choice
Question
If a company is profitable, the liquidation is generally_______ than the prevailing market price of the share.a.The sameb.Lowerc.Higherd.Either higher or lowerClear my choice
Solution
The answer is c. Higher.
If a company is profitable, the liquidation value is generally higher than the prevailing market price of the share. This is because the liquidation value is the total worth of a company's physical assets — its real estate, manufacturing or office equipment, and inventory. If the company is profitable, these assets are likely to be well-m
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