Liquidation value is of primary importance to investors because it represents the true amount of cash that an investor is likely to receive.

Question

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Liquidation value is important but not of primary importance to most investors because it represents the value of the company's assets if it were to go out of business and liquidate its assets. Most investors are more interested in the going concern value, which is the value of the company as an ongoing entity.

Liquidation Value Is of Primary Importance to Investors Because It