Which of the Following Will Causes Prices of Financial Instruments

question 64

Multiple Choice

Which of the following will causes prices of financial instruments to change?

• A)current earnings
• B)expected future earnings
• C)Both a and b are correct.
• D)None of the above is correct.

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Definitions:

Scrap Value

The estimated residual value of an asset at the end of its useful life, often considered when calculating depreciation.

Cash Inflows

Money received by a business from various sources, including operations, investment, and financing activities.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.

Project Profitability Index

A financial metric used to analyze the potential return of an investment project considering its present value of cash inflows and initial investment.