True or false DCF Approach Model examines the price of "similar" assets in relation to a common variable, such as profits, cash flows, book value, and sales, to determine the asset's worth. In most cases, a company's book value and its market value are the same. The Cost Approach Model adjusted the anticipated cash flows by discounting them to the valuation date using time value of money principles and a risk-adjusted discount rate that represents the asset's risk. We only need to know the future cash flows in order to value an investment A company's resources must be worth the same as the contractual claims on those resources.
True or false DCF Approach Model examines the price of "similar" assets in relation to a common variable, such as profits, cash flows, book value, and sales, to determine the asset's worth. In most cases, a company's book value and its market value are the same. The Cost Approach Model adjusted the anticipated cash flows by discounting them to the valuation date using time value of money principles and a risk-adjusted discount rate that represents the asset's risk. We only need to know the future cash flows in order to value an investment A company's resources must be worth the same as the contractual claims on those resources.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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True or false
DCF Approach Model examines the price of "similar" assets in relation to a common variable, such as profits,
In most cases, a company's book value and its market value are the same.
The Cost Approach Model adjusted the anticipated cash flows by discounting them to the valuation date using
We only need to know the future cash flows in order to value an investment
A company's resources must be worth the same as the contractual claims on those resources.
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