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In Terms of the Balance Sheet Model of the Firm

Question 18

Multiple Choice

In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to:


A) tangible fixed assets plus intangible fixed assets.
B) sales minus costs.
C) cash inflow minus cash outflow.
D) the value of the debt plus the value of the equity.
E) the value of the debt minus the value of the equity.

Correct Answer:

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