The _______ is defined as the present value of all cash proceeds to the investor in the stock.
A)dividend payout ratio
B)intrinsic value
C)market capitalization rate
D)plowback ratio
E)none of the above

Question

Quizplus · Accepted Answer

Intrinsic value is calculated as the present value of all expected future cash flows from the stock, including dividends. It represents the true value of the stock and can be compared to the current market price to determine if the stock is undervalued or overvalued. The other options listed are financial ratios or rates that are used to evaluate a company's financial performance or stock valuation but do not directly measure the present value of cash proceeds to the investor.

The _______ Is Defined as the Present Value of All