An Asset Has a Market Value of $105,and an Intrinsic

question 14

Multiple Choice

An asset has a market value of $105,and an intrinsic value of $100,and a present value of $113.What is the maximum amount you would want to pay now for the asset?

• A)$100
• B)$105
• C)$113
• D)Some other amount

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Definitions:

Credit Card

A payment card issued by a financial institution allowing the cardholder to borrow funds for the purchase of goods and services with the promise to repay the borrowed amount along with any agreed-upon fees.

Debit Card

A card used to electronically subtract money from a bank account to pay for goods or services.

Relative Advantages

The degree to which an innovation or solution is perceived to be better than the idea, program, or product it replaces.

Dishonors

Refers to the refusal or inability of a party to accept or pay a bill of exchange, check, or draft when presented for payment.