The value of a financial asset is the ________
A) present value of all of the future cash flows that will be received
B) sum of all previous cash flows received
C) future value of just the capital gains but not the dividends
D) present value of just the capital gains but not the dividends
Answer: A
Explanation: A) The value, or price, of a financial asset is the present value of all of the future cash flows that you will receive while you maintain ownership of the asset. If you sell the asset, then your selling price becomes one of the future cash flows you receive.
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New Corporation had net income for 2016 of $80,000
New Corporation had 13,000 shares of common stock outstanding at the beginning of the year and 24,000 shares of common stock outstanding at the end of the year. There were 12,000 shares of preferred stock outstanding all year. During 2016, New Corporation declared and paid preferred dividends of $21,000. What is New Corporation's earnings per share? (Round the answer to two decimal places.) A) $3.33 B) $3.19 C) $4.32 D) $2.46
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Indicate whether the statement is true or false