The Process of Valuing an Investment by Determining the Present

question 128

Multiple Choice

The process of valuing an investment by determining the present value of its future cash flows is called (the) :

• A) Constant dividend growth model.
• B) Discounted cash flow valuation.
• C) Average accounting valuation.
• D) Expected earnings model.
• E) Capital Asset Pricing Model.

---

Definitions:

Chart Sheet

A worksheet in spreadsheet software that is dedicated to displaying a chart or graph.

Dialog Box

A small window that prompts the user to make a decision or enter information, often part of a graphical user interface.

Format Painter

Format Painter is a tool found in many software applications that allows users to copy formatting from one object or text selection to another quickly.

Format Cells

The process of adjusting a cell's appearance or data type in a spreadsheet application.