Question #24
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 9
Status: Correct
Correct Answer: A
Question
The goal of asset valuation, based on the expected future cash flows of an asset, is to establish an asset's:
Answer Choices:
A. intrinsic value
B. market value
C. relative value
Explanation
Asset valuation based on the expected future cash flows is utilized to estimate an asset's
intrinsic value, or the value derived from the asset's investment characteristics.