Which of the Following Is True for Intrinsic Values

question 17

Multiple Choice

Which of the following is true for intrinsic values?

• A)It is the present value of future expected cash flows.
• B)It is unaffected by changes in interest rates.
• C)It must be below current market price for a stock purchase to be acceptable.
• D)It is the undiscounted value of the cash that can be taken out of a business during its remaining life.

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Definitions:

Obtain Resources

The act of securing the assets, finances, or materials required by a business or organization to operate and achieve its objectives.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, carrying on business, and suing or being sued.

Book Publisher

A company or individual responsible for the reproduction, marketing, and distribution of books.

Manufacturing Business

A type of business that produces goods through the process of raw materials conversion using labor, machinery, and equipment.