Question

Whare are the basic differences between book value, liquidation (disposal) value, going concern value, market value and intrinsic value?

Answer 1

Book value is the historical value of assets and is represented on the balance sheet as the actual cost less depreciation. Liquidation value is the amount that can be realized if asset were individually sold and not a part of going concern. Market value is the observed value of the asset in the marketplace where buyers and sellers negotiate mutually acceptable price. Intrinsic value is the present value of the expected future cash flows of the assets discounted at an appropriate discount rate that indicates risk.