Which of the Following Is NOT One of the Ways

question 18

Multiple Choice

Which of the following is NOT one of the ways whereby the value of a firm can be broken down into two or more subparts?

• A)(1 )Nonoperating assets and (2 )operating assets plus the present value of the depreciation tax shield.
• B)(1 )New product line and (2 )base business.
• C)(1 )The present value of continuing-value cash flow and (2 )the present value of the cash flow from the explicit forecast period.
• D)(1 )The present value of economic profit from continuing value,(2 )the present value of economic profit of the explicit forecast period,and (3 )invested capital.

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Definitions:

Perfectly Inelastic

Perfectly inelastic describes a market scenario where the quantity demanded or supplied does not change regardless of price fluctuations.

Supply

The total amount of a certain good or service that is available for purchase at a particular price level and time.

Perfectly Inelastic

Refers to a market situation where the quantity demanded or supplied does not change regardless of the price level changes.

Perfectly Elastic

Describes a market situation where quantity demanded or supplied changes by an infinite amount in response to any change in prices.