Question #37
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 13
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
A valuation of a firm based on the assumption that the firm will continue to operate is referred to as its:
Answer Choices:
A. going-concern value
B. operating value
C. status quo value
Explanation
The going-concern value is based on the assumption that the firm will continue to operate
and the firm's value is the present value of its future dividends.