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Which of the Following Is True for Intrinsic Values

Question 17

Multiple Choice

Which of the following is true for intrinsic values?


A) It is the present value of future expected cash flows.
B) It is unaffected by changes in interest rates.
C) It must be below current market price for a stock purchase to be acceptable.
D) It is the undiscounted value of the cash that can be taken out of a business during its remaining life.

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