ACCOUNTING 333 CHAPTER 4
Salt Lake Community College
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ACCOUNTING 333 CHAPTER 4 PRACTICE QUIZ
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ACCOUNTING 333 CHAPTER 4 PRACTICE QUIZ
The value of a firm is best defined as the:
o sum of all of the firm's future cash flows.
o current year's cash flow times (1 + g).
o current year's cash flow divided by r.
o total present value of all of the firm's future cash flows.
o current year's cash flows divided by (g - r).
2. Given a firm with positive annual cash flows, which one of the following will increase the current
value of that firm?
o Increasing the annual growth rate of the...
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ACCOUNTING 333 CHAPTER 4 PRACTICE QUIZ
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ACCOUNTING 333 CHAPTER 4 PRACTICE QUIZ The value of a firm is best defined as the: o sum of all of the firm's future cash flows. o current year's cash flow times (1 + g). o current year's cash flow divided by r. o total present value of all of the firm's future cash flows. o current year's cash flows divided by (g - r). 2. Given a firm with positive annual cash flows, which one of the following will increase the current value of that firm? o Increasing the annual growth rate of the...
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