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anonymous

  • 5 years ago

How should I treat excess cash when determining fair value? Is it right to add this to shareholder value if cash on balance exceeds total debt (positive net debt)?

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  1. anonymous
    • 5 years ago
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    Negative nebt debt, rather.

  2. anonymous
    • 5 years ago
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    Yes. It belongs to stockholders.

  3. anonymous
    • 5 years ago
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    Is this why you sometimes see the share price (of a company that was recently acquired/taken private) trade higher than the agreed upon price per share?

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