The present value of a company's future cash flows from existing assets and businesses is referred to as ________.
A) intrinsic value
B) current value
C) market value
D) present value

Question

Quizplus · Accepted Answer

The intrinsic value of a company represents the present value of its future cash flows based on the current worth of its assets and businesses. It is a fundamental approach to valuing the company, taking into account its financial performance and potential for growth. Current value refers to the price of a company's assets and liabilities at the current time, whereas market value is the price of the company's shares based on market demand and supply. Present value is a financial concept that represents the current value of future cash flows after considering the time value of money.

The Present Value of a Company's Future Cash Flows from Existing