The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as
A) return on assets.
B) ROVA.
C) earnings per share.
D) shareholder value.
E) ROI.

Question

Quizplus · Accepted Answer

The calculation of shareholder value involves determining the present value of anticipated future cash flows and the value of the company if liquidated. It takes into account the long-term profitability of the business and the potential return for shareholders. Options A, B, C, and E refer to specific financial metrics or ratios that may be used to analyze business performance, but they do not encompass the concept of shareholder value.

The Present Value of the Anticipated Future Stream of Cash