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Ghella [55]
3 years ago
14

The valuation of a financial asset is based on the concept of determining the present value of future cash flows that this finan

cial asset will accumulate.
True / False.
Business
1 answer:
Alina [70]3 years ago
3 0

Answer:

True.

Explanation:

To assess the value of an asset, it is important to determine if its future cash flows will make it worth for an investor to buy it in the present. The present value (PV) of a financial asset is the <em>value in the present</em> of all future cash flows the asset is expected to generate by using a discount rate.

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The financial statement that reports the changes in the retained earnings and common stock for a period of time is known as the.
Tamiku [17]

The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the start and end of a period (e.g., a month or a year). The record reflects a company's solvency and financial position.

<h3>What are the three financial statements?</h3>

The earnings report , record , and statement of money flows are required financial statements. These three statements are informative tools that traders can use to research a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What is the statement of retained earnings ?

Reports the way that net and the distribution of dividends affected the financial position of the company during the accounting period. the sum of the share of net income which is not paid to the shareholder as dividend. the aim of the retained earnings is reinvestment

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8 0
1 year ago
Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of?
mylen [45]

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of a and b.

Investors are usually different from traders. Investors invest capital for long-term gains, while traders buy and sell securities repeatedly in pursuit of short-term gains. Investors typically generate income by investing capital in either stocks or debt.

So how does an investor choose which stocks to buy?He has two main investment styles: active and passive. Active investors try to outperform the market by buying stocks that they believe are undervalued, with the intention of selling when the stock price rises.

Stock pick. An active portfolio management approach that focuses on a favorable selection of specific stocks rather than broad asset allocation.

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The question is incomplete. Please read below to find the missing content.

Investors select a stock based on the case they expect to receive from that stock. That cash comes in the form of ____.

a. Dividends

b. The future sales price.

c. Interest payments.

d. Commissions.

7 0
2 years ago
A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position w
posledela

Answer:

2,000

Explanation:

To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.

3 0
3 years ago
You mow your​ neighbor's yard and he pays you​ $25. Which function of money does this BEST​ represent?
elena55 [62]
You mow your​ neighbor's yard and he pays you​ $25. Which function of money does this BEST​ represent? Medium of exchange. The function of money, medium of exchange, is the exchange of money for a good or service. They are facilitating the transaction by paying the neighbor for the lawn cutting service. 


5 0
3 years ago
Read 2 more answers
Reeves Co. filed suit against Higgins, Inc., seeking damages for copyright violations. Higgins' legal counsel believes it is pro
GaryK [48]

Answer:   Higgins should report this litigation as a contingent liability.

Explanation: A liability that is contingent upon an event, that is, dependent on a future event that may or may not happen is called contingent liability. Potential law suits, pending investigations are some of the examples of contingent liability.

A contingent liability will only be recorded if there is likely probability that the event on which such liability depends will occur and the amount of liability could be reasonably estimated.

6 0
3 years ago
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