If you were in charge of a private firm and it doesn’t have a share price, what should your goal as a financial manager be?

If you were in charge of a private firm and it doesn’t have a share price, what should your goal as a financial manager be?

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Expert Solution

If we are the In-charge of a private firm and have to value the share price, so as a financial manager our goal is to access the worth of the business from the balance sheet of the company to get the share price. The worth of the business can be attained by substracting the liabilities of the business out of total worth of the assets of the business.

The valuation of the share price of the company which is not listed at the stock exchange and do not have share price in the market can be calculated by getting “Net Worth per share”.

The valuation of the Net Worth is the proper method of accessing the share price because it is the actual valuation of the business of the firm.

jeff jeffy answered 1 year ago

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