Nonfinancial Variables to Consider in Valuation Include ________

question 24

Multiple Choice

Nonfinancial variables to consider in valuation include ________.

• A) Market space
• B) Competitive environment
• C) Legal and regulatory status of the firm
• D) Customer goodwill
• E) All of the above

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Discount Rate

In discounted cash flow analysis, it's the rate used to bring future cash flows down to their present worth.

Accounting Break-even Quantity

The number of units that must be sold to cover all costs, both fixed and variable, with no profit or loss.

Variable Costs

Outgoings that are contingent upon the scale of production operations.