The Alternative Continuing-Value Measure CVt = (NOPLATt₊₁)/WACC Depends on the Assumption

question 5

Multiple Choice

The alternative continuing-value measure CVt = (NOPLATt₊₁) /WACC depends on the assumption that:

• A)Excess profits will be competed away.
• B)WACC is greater than the inflation rate.
• C)NOPLATt₊₁ represents a value from the peak of the business cycle.
• D)NOPLATt₊₁ represents a value from the trough of the business cycle.

---

Definitions:

Harm Model

A conceptual framework used to evaluate or predict the negative impacts of a policy, action, or system.

Aggression

Various activities that have the potential to inflict physical or emotional injury on the individual, others, or environmental elements.

Quid Pro Quo

A Latin term meaning 'something for something,' referring to a mutual exchange or agreement where one thing is given in return for another.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with their work performance, or creates a hostile work environment.