Question

if the stocks are undervalued the profit and assets will be what
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Answer 1

Explanation:

Decreased. It leads to over capitalisation

Answer 2

If the stocks are undervalued the profit and assets will

Explanation:

• Undervalued refers to an asset or security whose price is perceived to be less than its true value.
• The intrinsic value of a company is the present value of the free cash flows expected  to be made by the company
• An undervalued stock can be evaluated by looking at the underlying companys financial statements and analysing its fundamentals.
• If price is lower than the value of the assets , the stock is undervalued, assuming that the company is not in financial problem.
• If stocks is undervalued  assets will also decrease.