If the Current Price of a Stock Is $200 and the Discount

question 73

Multiple Choice

If the current price of a stock is $200 and the discount factor is 10 percent, what is the constant cash flow?

• A)$100
• B)$200
• C)$20
• D)$10

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Definitions:

Days' Sales

The metric used to evaluate how efficiently a company can convert its inventory into sales, often expressed as days' sales in inventory.

Receivables

All money claims against other entities, including people, business firms, and other organizations.

Current Liabilities

Short-term financial obligations a company owes and is expected to pay within a year, such as accounts payable and short-term loans.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.