Customer Lifetime Value Describes the Net Present Value of the Stream

question 85

True/False

Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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Definitions:

Preferred Stock

A type of stock that gives shareholders preference over common stockholders in the distribution of dividends and assets upon liquidation.

Common Stock

Equity securities representing ownership in a corporation, providing voting rights and sharing in the profits through dividends.

Comprehensive Income

An all-inclusive measure of a company's income, including both its net income and other comprehensive income items that are not included in the net income.

Other Comprehensive Income

Components of total comprehensive income that are not part of net income, including items that have not been realized, such as unrealized gains or losses on available-for-sale securities.