The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as
A)return on assets.
B)ROVA.
C)shareholder value.
D)earnings per share.
E)ROI.

Question

Quizplus · Accepted Answer

The present value of the anticipated future stream of cash flows plus the value of the company if liquidated is the shareholder value. This is the total value of the company as perceived by its shareholders. Options A, B, D, and E are all financial metrics used to evaluate the performance of a company, but they do not necessarily capture the full value of the company.

The Present Value of the Anticipated Future Stream of Cash