LOS c, (Part 3): Contrast the recognition of value in the residual income model to value recognition in other present value models.
Q1. In the residual income approach, value tends to be recognized:
A) earlier than in other present value-based approaches.
B) later than in other present value-based approaches.
C) almost exclusively due to estimated terminal value.
Q2. In the residual income approach:
A) value is recognized earlier than in other present value-based approaches.
B) uncertainty concerning the estimated terminal value is low.
C) value is predominately derived from expected terminal value. |