In a general sense,the value of any asset is the:
A) value of the dividends received from the asset.
B) present value of the expected cash flows received from the asset.
C) value of past dividends and price increases for the asset.
D) future value of the expected cash flows to be received from the asset.

Question

Quizplus · Accepted Answer

The value of an asset is determined by the present value of the expected future cash flows it is expected to generate. This includes all forms of cash flows such as dividends, price increases, and any other benefits associated with owning the asset. Therefore, option B is the most comprehensive and accurate answer.

In a General Sense,the Value of Any Asset Is The