Michael Perelman wrote: > Ajit Sinha wrote: > > > > > Michael, your firm must have a market value today. How do you arrive at the market >value of your firm? > > Why? Is it reflected in the stock market value? The value of a firm cannot be >known. The market is too thin > to know the price in advance of its sale on the market, unless enough similar firms >have been sold recently. _____________ Let us suppose you want to borrow money against your firm as collateral. Wouldn't the bank make some estimation of the value of your firm? How would the bank do that? If your firm has no price, i.e., it's worthless in the market, then in economic sense you are producing something out of nothing. But in anycase, our basic difference was about the role of inflation or deflation in calculating the generalized rate of profit. I still don't understand how inflation or deflation affects something that seem to have no price? Cheers, ajit sinha > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail [EMAIL PROTECTED]
