The net present value (NPV)of a stock is calculated by discounting cash flows arising from this stock using the risk-free interest rate.

Name: The net present value (NPV)of a stock is calculated by discounting cash flows arising from this stock using the risk-free interest rate.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

The NPV of a stock is calculated by discounting cash flows arising from this stock using the stock's required rate of return, which is based on its risk. It is not discounting using the risk-free interest rate.

The Net Present Value (NPV)of a Stock Is Calculated by Discounting