The Final Step When Applying Enterprise Value Analysis to the Evaluation

question 15

Multiple Choice

The final step when applying enterprise value analysis to the evaluation of business strategies is:

• A)The estimation of cash-flows generated by the business for the next 10 years
• B)The identification of alternative strategies
• C)The identification of the influence of each strategy on the firm's cost of capital
• D)The ranking of the alternative strategies in descending order of NPV value

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Definitions:

Deoxyribonucleic Acid (DNA)

Genetic material that takes the form of a double helix composed of phosphates, sugars, and bases.

Cytosine

One of the four main nucleobases found in DNA and RNA, which pairs with guanine.

Guanine

One of the four main nucleobases found in the nucleic acids DNA and RNA.

Sex Chromosome Pattern

The configuration of sex chromosomes (XX for females, XY for males) that determines an individual's genetic sex.