Examlex
Fisher's separation theorem shows important relationships between:
Discount Rate
The rate of interest deployed in DCF assessments to establish the present worth of forthcoming cash flows.
Pretax Return
The income a company generates before any taxes are subtracted.
Working Capital
The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.
Salvage Value
The projected sales value of an asset at the termination of its effective life.
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