The three steps in determining a stock's intrinsic value are
I. estimating the stock's future cash flows.
II. estimating the risk associated with future cash flows.
III. careful analysis of patterns in the stock's recent price history.
IV. estimating an appropriate discount rate to apply to future cash flows.
A) II, III and IV only
B) I, II and IV only
C) I, III and IV only
Answer: B
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A retailer attempting to improve its selling efficiency from 60 percent to 70 percent reduced its selling expense budget from $400,000 to $300,000 . However, its new selling efficiency was reduced to 50 percent. What happened?
a. Sales decreased from $1,000,000 to $500,000. b. Sales decreased from $1,000,000 to $600,000. c. Sales decreased from $1,000,000 to $700,000. d. Sales increased from $1,000,000 to $1,250,000.
Which of the following is most likely to affect the location strategy of a manufacturing firm?
A) appearance/image of the area B) utility costs C) purchasing power of drawing area D) competition in the area E) parking availability
Which of the following is described by Griffin Farley as a plan not for the people you reach, but for the people they will reach?
a. Proposition brief. b. Experience brief. c. Propagation plan. d. Creative brief. e. Propagation brief.
All the following features are unique to insurance contracts (versus other business contracts) except:
A) insurable interest B) subrogation C) utmost good faith D) consideration