The Key Inputs to the Valuation Process Are ________

question 121

Multiple Choice

The key inputs to the valuation process are ________.

• A)risk and risk aversion
• B)cash flow,cash flow timing,and risk
• C)cash flows and depreciation
• D)cash flows and taxes.

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Definitions:

Publicly Held Corporation

A company that sells its stocks or shares to the public on at least one stock exchange.

Gross Investment

The total amount spent on new fixed investment plus replacement investment, without accounting for depreciation.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing assets.

Capital Stock

The total amount of physical and financial assets owned by a company or country, including machinery, buildings, and investments.