Which of the Following Is an Example of Wealth

question 199

Multiple Choice

Which of the following is an example of wealth?

• A)a yearly salary of $40,000 
• B)a mutual fund balance of $1,000 
• C)rental payments of $3,000 per month 
• D)stock dividends of $500 per quarter

---

Definitions:

Share Price

The current price at which a share of a company is bought or sold on the stock market.

Free Cash Flow (FCF)

The money a business produces once it has subtracted the funds used to sustain its operations and keep up its capital assets.

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a measure of the cost of capital.

Intrinsic Value

The inherent, actual value of an asset, determined by internal characteristics and fundamentals, rather than current market price.