The Term Capitalization Refers to the Conversion of a Future

question 40

True/False

The term capitalization refers to the conversion of a future income stream into a present value, and it is a
term often used by business appraisers when future income or cash flows are not expected to grow or to grow at a constant rate.

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Definitions:

Psychological Health

A state of well-being in which an individual realizes his or her own abilities, can cope with the normal stresses of life, works productively, and is able to make a contribution to their community.

Physical Health

A state of well-being in which an individual is free from illness, injury, or impairment, and can perform daily activities without physical constraints.

Pathway Thinking

A cognitive approach focusing on exploring multiple routes and methods to achieve a specific goal or solve a problem.

Agency Thinking

The cognitive process that leads individuals to believe they can influence their own actions and the environment around them.