The Two Components That Are Required in Order to Carry

question 70

True/False

The two components that are required in order to carry out asset valuation are (1) the stream of expected cash flows and (2) the required rate of return.

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.

Issuer

An entity, such as a corporation or government, that develops and offers securities for sale to investors to raise capital.

Issued

Pertains to securities or other financial instruments that have been created and offered for sale to investors by a corporation or government entity.

Cash Received

The total amount of cash that an entity collects during a specific period, from various sources including sales, financing, or investments.