Which of the Following Are Considered Methods for Valuation of a Venture

question 34

Multiple Choice

Which of the following are considered methods for valuation of a venture?

• A) return on investment
• B) stock market method
• C) multiple of earnings
• D) a and c are correct

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Definitions:

Term Deposit

A bank deposit with a fixed term and typically a fixed rate of interest, where withdrawal can only occur after the term ends without penalty.

Holding Cash

The practice of keeping money in the form of physical currency as a store of value or for transactions.

Money Demand Curve

A graphical representation showing the relationship between the quantity of money people want to hold and the interest rate, under the assumption that all other determinants of demand are unchanged.

Nominal Interest Rate

The interest rate actually paid for a loan, not adjusted for inflation.