标题: Reading 35: Equity Valuation: Applications and Processes-LOS [打印本页]
作者: 土豆妮 时间: 2011-3-17 11:56 标题: [2011]Session 10-Reading 35: Equity Valuation: Applications and Processes-LOS
Session 10: Equity Valuation: Valuation Concepts
Reading 35: Equity Valuation: Applications and Processes
LOS b: Explain the going concern assumption, contrast a going concern value to a liquidation value, and identify the definition of value most relevant to public company valuation.
The present value of expected future cash flows is the firm's:
Going-concern value is the present worth of expected future cash flows generated by a business.
作者: 土豆妮 时间: 2011-3-17 11:56
A valuation of a firm based on the assumption that the firm will continue to operate is referred to as its:
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.
作者: 土豆妮 时间: 2011-3-17 11:56
A comparison between a firm’s going-concern valuation and its liquidation value will show that the going-concern value will always be:
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A) |
equal to the present value of the expected continued operation of the firm. | |
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B) |
greater than the liquidation value. | |
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C) |
less than the liquidation value. | |
It is not possible to state the relationship between the going-concern value and the liquidation value without examining the prospects for the firm and the current value of the assets. The going-concern value is equal to the present value of the expected dividends arising from continued operation.
作者: 土豆妮 时间: 2011-3-17 11:56
Liquidation value is the:
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A) |
market value of the total assets less the market value of the total liabilities. | |
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B) |
present value of future cash flow less the possible liquidation cost. | |
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C) |
cash generated by terminating a business, selling its assets, and repaying liabilities. | |
Liquidation value is the cash generated by terminating a business, selling all of its assets, and repaying liabilities.
作者: 土豆妮 时间: 2011-3-17 11:57
A valuation of a firm based on the current market price of its assets - liabilities is referred to as the firm’s:
The liquidation value is based on the assumption that the firm will cease to operate and all of its assets will be sold to repay liabilities.
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