The determinants of an asset's intrinsic value do not include:
A)The opportunity cost of capital
B)The future cash flow expected from the asset
C)The market price of the asset
D)None of the above

Question

Quizplus · Accepted Answer

The intrinsic value of an asset is based on its expected future cash flows and the opportunity cost of capital. The market price of the asset is influenced by supply and demand factors and may not necessarily reflect its intrinsic value. Therefore, C is not a determinant of an asset's intrinsic value.

The Determinants of an Asset's Intrinsic Value Do Not Include