« Common Wealth: Economics for a Crowded Planet | Main | Surely you all wondered the same »
Always Low Prices
Given that the company headquarters is said to be worth about $1.2 billion, that gives the BS [Bear Stearns] banking business a value of negative $1 billion.
That's John Quiggin. As Matt Yglesias points out, maybe the building isn't worth $1.2 billion any more but that isn't reassuring economic news either.
Posted by Tyler Cowen on March 17, 2008 at 07:22 AM in Current Affairs | Permalink
Comments
Bear Stearns does not own the land (99-year lease) and has already sale-leasebacked the building.
This does not entirely negate the "negative enterprise value" thesis, but it does make it more complicated than "it's worth $1.2 billion."
Posted by: KipEsquire at Mar 17, 2008 11:26:01 AM
Hold it, folks. Let's remember our intro finance here: The value of a business' assets equals the value of its equity plus the value of its debt. It's equity was bought for $200million, but it also has an enormous (!) amount of debt, implying a positive enterprise value.
Posted by: Joshua Slive at Mar 17, 2008 11:50:05 AM
The value of a business' assets equals the value of its equity plus the value of its debt. It's equity was bought for $200million, but it also has an enormous (!) amount of debt, implying a positive enterprise value.
Posted by: Presafa at Mar 18, 2008 5:26:29 AM
And the more cheap Final Fantasy XI Gold is very good for you.
Posted by: cheap Final Fantasy XI Gold at Jan 2, 2009 12:37:16 AM
Dofus kamas
buy dofus kamas
cheap kamas
dofus kama
dofus gold
dofus money
Posted by: aion kina at Mar 18, 2009 3:42:28 AM
Is it realistic?
Posted by: tina at May 15, 2009 4:11:42 AM
you get too little
Posted by: tina at May 15, 2009 4:13:02 AM
Is it realistic?
Posted by: bady at May 15, 2009 4:13:42 AM
