Market Based Assets

Topics: Asset, Depreciation, Investment Pages: 2 (481 words) Published: October 7, 2011
Company value mean the amount of money is worth. How is the worth detected? And how you figure out how much a company is worth? One way is to add up all its asset (equipment, cash, stock, acc receivable,etc). But that is not necessary what the company is worth, you can have inventory/stock and other asset that have a book value of $2mil but perhaps no one who want to pay that much to them, so the test of value is how much a buyer will pay and how much someone will pay is largely dependent by what revenue that the company will earn in future. In short term it is known as your NPV or cash flow.

2. MBA means they are assets that exist out in the market on the mind of the consumer. These asset are known as MBA because they are valuable in the sense they will cost money to replace and they help to ensure revenue keep flowing Into the company. 3.convertible, rare, not imitable,does not have perfect substitute – kasi cari definition sana reading 4. plant n equipment are tangible assets. There is a ready market for them meaning they can be bought or sold. By contrast a cant sell of your brand awareness which is your MBA because brand awareness is tangible. Plan n equipment can be amortized or depreciated. So in other words is easy to know what their book value is at a point in time meaning putting it on a balance sheet. The value of MBA is much harder to measure what exactly is the dollar value of a brand awareness, salience, good relationship with customer and distribution agreement , therefore MBA are not treated officially as assets ans such they cannot be recognize or treated like an assets. 5. Share premium is when the brand sell more thn it should do given in the level of market support if get its price and the charges. Example in theory they are 2brand both quality rating of 8.0 out of 10, similar distribution, same price and same level of advertising. But brand A has 60% of market share and brand V have 40%. By right they should have the same share premium...
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