Each One of the Following Is a Method for Directly

question 72

Multiple Choice

Each one of the following is a method for directly measuring the value of a firm's equity except:

• A)The discounted cash flow method.
• B)Market value.
• C)Sales multiple.
• D)Earnings-based valuation.
• E)Enterprise value.

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Definitions:

Net Operating Profit After Taxes (NOPAT)

NOPAT is a measure of a company's operating efficiency, indicating the profit generated from operations after taxes but before financing costs and non-operating gains and losses.

Shareholders' Equity

The owners' equity in a corporation, calculated as the company's total assets minus its total liabilities.

Corporate Tax Liability

The total amount of taxes owed by a corporation based on its taxable income.

Projected Taxable Income

An estimate of an entity's income for a fiscal period that is subject to income tax.