Which of the Following Statements Is/are Correct

question 32

Multiple Choice

Which of the following statements is/are correct?
i.Going-concern value of a firm is equal to the present value of expected net income.II.When a buyer values a target firm,the appropriate discount rate is the buyer's weighted-average cost of capital.III.The liquidation value estimate of terminal value usually vastly understates a healthy company's terminal value.IV.The value of a firm's equity equals the discounted cash flow value of the firm minus all liabilities.

• A) II only
• B) III only
• C) I and II only
• D) II and III only
• E) II,III,and IV only

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Definitions:

Vertebrates

Animals with a backbone or spinal column, which includes fish, amphibians, reptiles, birds, and mammals.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the tissues of the body and returns carbon dioxide from the tissues to the lungs.

Antibodies

Proteins produced by the immune system that recognize and bind to specific foreign substances called antigens to neutralize or destroy them.

Histamine

A compound found in body cells that plays a major role in allergic reactions, acting as a neurotransmitter and involved in the regulation of stomach acid.