You estimate that the present value of a firm's cash flow is valued at $15 million. The break up value of the firm if you were to sell the major assets and divisions separately would be $20 million. This is an example of what Peter Lynch would call ________.

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This scenario is an example of what Peter Lynch would call an "asset play." An asset play occurs when the breakup value of a company's assets is worth more than the present value of its cash flows. In this case, the firm's break up value is $20 million, which is higher than its present value of $15 million. Therefore, the company's value would be maximized by selling its major assets and divisions separately.

You Estimate That the Present Value of a Firm's Cash