In a General Sense, the Value of Any Asset Is

question 41

Multiple Choice

In a general sense, the value of any asset is the

• A) value of the dividends received from the asset.
• B) present value of the cash flows expected to be received from the asset.
• C) value of past dividends and price increases for the asset.
• D) future value of the expected earnings discounted by the asset's cost of capital.

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Definitions:

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.

Ability-to-pay Principle

A tax principle stating that taxes should be levied according to an individual's or entity’s capacity to pay, typically measured by income or wealth.

Constitutional

Relating to the system of beliefs and laws that governs the organization and operation of a state or organization, typically documented in a written constitution.