The importance of cash flows in the absolute valuation process


Asked by maham237 @ in Business viewed by 422 People


is most similar to which of the following?
a) A student deciding to attend law school, because she forgoes a full- time job today in hopes of a well-paying job in the future
b) A government giving a tax break to wind farms, because it values future energy independence more than the cost of the subsidy to encourage alternative energy development
c) A fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock
d) A fitness instructor avoiding soda and candy, because he gives up foods he enjoys in order to live a healthier, longer life

Answered by maham237 @



Answer: c) A fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock

Explanation:

Absolute valuation is a valuation method used by businesses whereby the financial worth of a company is determined through the use of a discounted cash flow. Through this, the investors can know whether a stock is either overvalued or undervalued.

Based on the question, thee importance of cash flows in the absolute valuation process is most similar to a fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock.


Similar Questions

Prepare a statement of cash flows using the indirect method

Asked by admin @ in Business viewed by 403 persons

Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. …

Why is the hydrologic cycle an important process for earth

Asked by admin @ in Chemistry viewed by 293 persons

Why is the hydrologic cycle an important process for earth

The purpose of the cash flow statement is to

Asked by admin @ in English viewed by 358 persons

The purpose of the cash flow statement is to:​

Written documentation is not important in a project documentation process

Asked by admin @ in Business Studies viewed by 2764 persons

Written documentation is not important in a project documentation process. a. True b. False

Describe the process and importance of double circulation in humans

Asked by admin @ in Biology viewed by 283 persons

Describe the process and importance of double circulation in humans​

What is the most important process of cloud formation

Asked by maham237 @ in Chemistry viewed by 277 persons

Which process is the most important for cloud formation? A. cooling by contact with a cold surface B. cooling by compression of air C. cooling by expansion of air D. …

Cash flows from investing do not include cash flows from

Asked by admin @ in Business viewed by 295 persons

Cash flows from investing activities do not include cash flows from:a. Lending.b. The sale of equipment.c. Borrowing.d. The purchase of land and buildings.

Describe how cash flows are used to minimize political risk

Asked by admin @ in Business viewed by 350 persons

If you are the CFO of a multinational company. What steps could you take to minimize international risk? Describe how cash flows are used to minimize political risk

Compute the rate of return for the following cash flow

Asked by admin @ in Business viewed by 293 persons

Compute the internal rate of return for the cash flows of the following two projects (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal …

Depreciation is incorporated in cash flows because it

Asked by admin @ in Economy viewed by 285 persons

Depreciation is incorporated in cash flows because

Discuss the uses and limitations of cash flow statement

Asked by admin @ in Accountancy viewed by 505 persons

Explain the limitations of cash flow statement ?​

Explain the importance of fruit processing in human life

Asked by admin @ in Science viewed by 364 persons

Importance of fruit processing in human life

How does cash flow help the management in decision making

Asked by admin @ in Business Studies viewed by 330 persons

How does cash flow analysis help the management in decision making ?

Why is the degree of customization important for process planning

Asked by admin @ in Business Studies viewed by 335 persons

Why is the degree of customization an important consideration in planning process

Explain the importance of the grieving process after experiencing loss

Asked by maham237 @ in Health viewed by 274 persons

Most viewed questions in Business


Foolproof module 9 test answers

Asked by maham237 @ in Business viewed by 3322 persons


Interest rates are expressed as a percentage of

Asked by maham237 @ in Business viewed by 2110 persons



How to enhance knowledge regarding environmental factors through capsim?

Asked by wiki @ in Business viewed by 1811 persons


Match the job titles with the career clusters.

Asked by maham237 @ in Business viewed by 1482 persons


A company that allows you to license software

Asked by maham237 @ in Business viewed by 1295 persons



Lupe is ready to open a checking account

Asked by maham237 @ in Business viewed by 1287 persons


Mays and mccovey are beer brewing companies

Asked by maham237 @ in Business viewed by 1217 persons


What must be marked on ready to eat bags phfs

Asked by maham237 @ in Business viewed by 1173 persons



Coq six sigma

Asked by maham237 @ in Business viewed by 1141 persons


Henry ford was the first entrepreneur to implement which strategy

Asked by maham237 @ in Business viewed by 1086 persons


Your company was recently served with a lawsuit

Asked by maham237 @ in Business viewed by 1075 persons



Case study starting a business project schedules and curves edgenuity

Asked by maham237 @ in Business viewed by 1067 persons


The total annual expenditures on advertising in the united states

Asked by maham237 @ in Business viewed by 972 persons