Factor Mobility Refers to

question 122

Multiple Choice

Factor mobility refers to

• A)Technological change in the use of capital.
• B)The ease of reallocating resources.
• C)Technological change in the use of labor.
• D)The increase in labor productivity.

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Definitions:

Abnormal Earnings Approach

A method for valuing a company's worth based on the premise that stock prices are influenced by differences between the expected and actual earnings, adjusted for the cost of capital.

Equity Valuation

The process of determining the fair market value of a company's equity or shares.

Positive Abnormal Earnings

Earnings that exceed what is normally expected, based on historical trends or industry standards, often indicating superior performance.

Sustainable Earnings

Refers to the portion of a company's income considered to be predictable, repeatable, or likely to continue in the future.