Question

Vision Tech’s stock price is currently trading at $22 per share. The consensus among analysts is that the intrinsic value of Vision Tech’s stock is $29 per share. Is Vision Tech more or less likely to receive a hostile takeover bid?

Answer 1

More likely

Step-by-step explanation:

If the current market price of a stock is higher than the intrinsic value of that stock, it is less likely to receive a hostile takeover bid. On the other hand, if the current market price of a stock is lower than the intrinsic value of that stock, it is more likely to receive a hostile takeover bid. The reason is that the intrinsic value is the decision-making tool for the investors, which helps the investors to invest in that company.