The market value of any real or financial asset, including stocks, bonds, or art work purchased in hope of selling it at a profit, may be estimated by determining future cash flows and then discounting them back to the present.

Question

Quizplus · Accepted Answer

This statement is true. The process of determining future cash flows and then discounting them back to the present is a common method used in finance to estimate the value of assets. This is known as discounted cash flow analysis.

The Market Value of Any Real or Financial Asset, Including