Ask Question
25 January, 23:07

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?

+5
Answers (2)
  1. 25 January, 23:09
    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
  2. 25 January, 23:26
    0
    diversification premium

    Explanation:

    In this scenario, ESB Group has created diversification premium.
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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers