When assessing the value of a corporation, the most relevant information that decision-makers normally consider is
A) the potential for before-tax profits.
B)the potential for after-tax profits.
C) the current corporate tax rate.
D) cash flow before-tax.

Question

When assessing the value of a corporation, the most relevant information that decision-makers normally consider is
A) the potential for before-tax profits. 
B)the potential for after-tax profits.
C) the current corporate tax rate.
D) cash flow before-tax.

Quizplus · Accepted Answer

The potential for after-tax profits is the most relevant information as it takes into consideration the impact of taxes on the company's earnings. Decision-makers are interested in the amount of money a company can generate after taxes and other expenses are deducted. Other factors such as current tax rates and cash flow before-tax are important, but they do not provide a complete picture of the company's value.

When Assessing the Value of a Corporation, the Most Relevant