Explain how the time value of money concept is used in stock valuation

What will be an ideal response?

Answer: The intrinsic value of a stock is based on the current discounted value of all future dividends plus the discounted value of the sale price of the stock at a future point in time.

Business

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Sunny Florist is a flower shop that has recently moved to a new, larger location. At this new location, it has been unable to attract sufficient customers. Bonita Cho, its owner, does not have the cash to pay the current loan installment due on the building and inventory. Cho has decided to reduce all merchandise prices by at least 50 percent for a weekend sale so she can at least make her loan payment. Her pricing objective can be classified as which of the following?

a. satisfactory profits b. asset maximization c. sales maximization d. market share maximization

Business

Questionnaires are designed to collect information that is represented via measurement. This information, once compiled, can help answer specific questions. In this process, we are really measuring ________

A) properties of objects B) objects of properties C) operations D) definitions E) elements

Business