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The existing shareholders would be prepared to sell all of their shares in the company for...

The existing shareholders would be prepared to sell all of their shares in the company for $25 each and has asked you to evaluate whether this would be a fair price for the company if currently the share price is $20 per share.

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Answer #1
Current price is the market value of the share. It is the price at which a share of stock or any other security last traded.
It is recent selling price of a stock. It is the most reliable indicator of that security's present value.
The buyer is willing to pay and a seller will be accepting that price
Current Share price indicates current value of share
However, the real price of the next sale may be higher or lower depending on supply and demand.
The existing shareholders would be prepared to sell all of their shares in the company for $25 each and
Currently companys share price is $20 per share. The Fair price of Company share is $20
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