A company's net present value:
A. adds up the value of all the assets a company currently owns.
B. is a measure of the book value of that company.
C. is the current value of the company's expected future cash flows.
D. tells you the "correct" price of shares in the company.
Answer: C
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The Law of Demand is the reason behind:
A) the price elasticity of demand having a positive value. B) the income elasticity of demand having a positive value. C) the price elasticity of demand having a negative value. D) the income elasticity of demand having a negative value.
The faster the rate of technological progress: a. the greater the rate of economic growth
b. the slower the rate of economic growth. c. the greater the rate of population growth. d. the slower the rate of growth of the money supply.
A currency depreciation is a(n):
A. increase in the official value of a currency in a fixed-exchange-rate system. B. increase in the value of a currency relative to other currencies. C. reduction in the official value of a currency in a fixed-exchange-rate system. D. decrease in the value of a currency relative to other currencies.
A country will have a balance-of-payments surplus when its exchange rate:
A. is overvalued. B. equals the market equilibrium value. C. is flexible. D. is undervalued.