Ask Question
4 July, 07:40

ESB Group is the parent company of many related businesses under its banner. Each share of the parent company is quoted at $220. However, if this had to be assessed by adding the stock prices of each of its strategic business units, the value would only be $200 per share. In this scenario, what has ESB Group created?

+2
Answers (2)
  1. 4 July, 09:14
    0
    diversification premium

    Explanation:

    In this scenario, ESB Group has created diversification premium.
  2. 4 July, 10:55
    0
    Diversification Premium

    Explanation:

    Companies that pursue related diversification are more likely to improve their performance. They create a diversification premium: the stock price of related-diversification firms is valued at greater than the sum of their individual business
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “ESB Group is the parent company of many related businesses under its banner. Each share of the parent company is quoted at $220. However, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers