What term is used for the sum of the present value of free cash flows from operations plus the value of non- operating assets?
A) Economic profit
B) Shareholder value from operations
C) Corporate value
D) Total shareholder value

Question

Quizplus · Accepted Answer

The term used for the sum of the present value of free cash flows from operations plus the value of non-operating assets is corporate value. Economic profit is a measure of a company's profitability that compares the company's post-tax operating profit to the total cost of capital, while shareholder value from operations is the value created for shareholders from a company's ongoing operations. Total shareholder value takes into account the stock price and the market capitalization of the company.

What Term Is Used for the Sum of the Present