A venture's value is determined by its:
A)future free cash flows (to equity)
B)revenues
C)profits
D)assets

Question

Quizplus · Accepted Answer

A venture's value is determined by its future free cash flows. This is because the value of a business is ultimately based on the cash it generates for its owners. While revenues, profits, and assets are important factors in determining the value of a venture, they do not accurately capture the value of a company's future cash flows, which is the most important determinant of long-term value.

A Venture's Value Is Determined by Its