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Author Question: A company's book value is determined by A) applying the CAPM valuation model. B) ... (Read 44 times)

brutforce

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on: Jul 10, 2018
A company's book value is determined by
 
  A)
 
  applying the CAPM valuation model.
  B)
 
  applying a price-to-earnings model.
  C)
 
  dividing its assets by the number of common shares outstanding.
  D)
 
  dividing its net worth by the number of common shares outstanding.

Question 2

When solving for a present value, the interest rate is commonly referred to as the compound rate, but when solving for the future value, the interest rate is called the discount rate.
 
  Indicate whether the statement is true or false.


lindahyatt42

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

Answer: FALSE
Explanation: When solving for a FUTURE value the interest rate is commonly referred to as the compound rate but when solving for the PRESENT value the interest rate is called the discount rate.


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