Which of the Following Is (Are) Valid Techniques for Valuing

question 21

Multiple Choice

Which of the following is (are) valid techniques for valuing a company?

• A) Asset-based valuation
• B) Market-comparable valuation
• C) Cash flow-based valuation
• D) All of the Above

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a particular rate of discount.

Sinking Fund

A fund established by a government or corporation for the purpose of reducing debt by repurchasing bonds or shares.

Maturity

The date on which a debt instrument (such as a bond) is due to be repaid in full.

EAR

The Effective Annual Rate; a measure of the annual return on an investment or loan that takes into account the effect of compounding interest.