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

Quizplus · Accepted Answer

Decision-makers typically consider the potential for after-tax profits as the most relevant information when assessing the value of a corporation. This is because it reflects the actual amount of money that the corporation can generate for its investors and shareholders after accounting for taxes. Other factors, such as potential before-tax profits or current corporate tax rates, may also be important, but they are typically secondary to the potential for after-tax profits. Cash flow before-tax may also be relevant, but it does not necessarily reflect the profitability of the corporation after accounting for taxes and other expenses.

When Assessing the Value of a Corporation, the Most Relevant