Which One of the Following Develops the Value of the Firm

question 14

Multiple Choice

Which one of the following develops the value of the firm as the discounted present value of the firm's net free cash flows?

• A)Discounted cash flow method.
• B)Liquidity method.
• C)Multiples-based method.
• D)Profitability method.
• E)Purchasing power method.

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Definitions:

Chemically Bonded

The state of being joined or connected through chemical bonds, which involve the sharing or exchange of electrons between atoms.

Homogeneous

A descriptor for a mixture or substance that has the same uniform appearance and composition throughout.

Mixture

A physical combination of two or more substances in which each substance retains its own chemical identity and properties.

Alloy

A substance made by melting two or more elements together, at least one of them a metal, resulting in a material with characteristics different from the individual components.