Which of the Following Is the Best Statement of the Valuation

question 68

Multiple Choice

Which of the following is the best statement of the Valuation Principle?

• A)It is not possible to compare costs and benefits that occur at different points in time,in different currencies,or with different risks.
• B)The value of a commodity or an asset to the firm or its investors is determined by its competitive market price.When the value of the benefits exceeds the value of the costs in terms of market prices,the decision will increase the market value of the firm.
• C)The rate at which we can exchange money today for money in the future by borrowing or investing is the current market interest rate and is same across all banks.
• D)If equivalent goods or securities trade simultaneously in different markets across the world,they will trade for the same price.

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Definitions:

Impeachment Trial

An impeachment trial is the process by which a legislative body formally charges and then tries a public official for misconduct; in the United States, the Senate conducts impeachment trials following charges initiated by the House of Representatives.

Executive Privilege

A right claimed by the president of the United States and other members of the executive branch to resist certain subpoenas and other interventions by the legislative and judicial branches of government.

Supreme Court

The highest judicial body in a country or state, often having the final authority in interpreting the constitution and laws.

U.S. v. Nixon

A landmark Supreme Court case in 1974 that resulted in a unanimous decision against President Richard Nixon, compelling him to release tape recordings related to the Watergate scandal.