An advantage of the book value of equity plus adjustments approach is:
A) that it implicitly assumes that a firm is going to be shut down.
B) it doesn't consider the firm being valued as an ongoing concern.
C) we can immediately "plug in" the starting point of the book value of equity without having to do any calculations.
D) All of the above.
C
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What is the correct formula to calculate the after-tax salvage cash flow in B4?
a) =(B1-B2)*B3
b) =B1-(B1-B2)*B3
c) =B1-B1*B3
d) =B1+(B1-B2)*B3
e) =B1-(B2-B1)*B3
Early payment on a mortgage can result in a prepayment penalty
Indicate whether the statement is true or false.
An opportunity cost is ________
A) the cost incurred to gain the opportunity to make a sale B) the benefit gained by choosing a certain course of action C) the benefit given up by choosing an alternative course of action D) costs that have been incurred in the past
________ are the forums where buyers and sellers of financial assets and commodities meet
A) Housing markets B) Federal Reserve banks C) Financial markets D) Automotive shows