Jim Cramer’s Real Money Sane Investing in an Insane World
2. Building the model – the theory. At the most simple level, when a firm earns a ‘normal’ economic return on the shareholders’ investment (re), the firm’s total market capitalization (MVEt) should be approximately equal to its accounting book value of equity (BVEt), i.e., MVEt = BVEt. ................
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