A component that is valuation-relevant and expected to persist into the future is a permanent earnings component.
Correct Answer:
Verified
Q21: Return on assets (ROA)can be used to
Q22: Riskier firms have a lower risk-adjusted cost
Q23: In addition to valuing earnings generated from
Q24: The growth rate in earnings generally depends
Q25: Income (or loss)from discontinued operations is viewed
Q27: As transitory components become a more important
Q28: Based on a number of research studies,current
Q29: Using simplifying assumptions,the current stock price estimate
Q30: A component that is unrelated to future
Q31: Firms that earn less than the cost
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