Question

PLEASE NO HANDWRITTEN OR COPIED ANSWERS What determines value?

PLEASE NO HANDWRITTEN OR COPIED ANSWERS

What determines value?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Value is determined by the income making capacity of an asset or a business. For example in case of a company or firm, the value is determined by the discounted value of future cash flows of the business. So we first estimate the future cash flows and discount them by an estimated cost of capital. The present value of these cash flows is the value that any investor would give for this business.

Add a comment
Know the answer?
Add Answer to:
PLEASE NO HANDWRITTEN OR COPIED ANSWERS What determines value?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT