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The Value of a Firm by Calculating the Present Value

Question 23

Multiple Choice

The value of a firm by calculating the present value of cash flows generated by the firm's productive assets should,theoretically,be the same as:


A) The sum of the present values of the firm's equity and debt securities
B) The value of the firms net assets,as recorded on the balance sheet
C) The most recent price in which the firm's shares were traded,multiplied by the number of shares on issue
D) The present value of the cash flows generated by the firms real assets

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